We are living in difficult times, because after the first bloom of early economic prosperity and much needed (an aluminum foil hat is needed) a new storm hits the world based on a new virus that we know almost nothing more than 3 months since it spread to China.
Funds have fallen into obscure boundaries, marking historic landmarks, panic has taken hold with supermarkets and the government is not stopping lying in an attempt to reassure the public instead of taking drastic measures.
AMD falls over 14% on COVID-19 and shareholders are nervous
To clarify, AMD dropped dramatically -14.64% Yesterday, a collapse that rallied with its rivals to a greater or lesser degree, but that almost all alarms on the Nasdaq as it was a rising powerhouse of PC technology.
For this reason, AMD has wanted to come forward to put a little calm, because the collapse is due to the so-called dra network of the whole fund, the shock costs shock, they often say. However, the company is re-setting its sales forecast for the year 2020, when it says it will achieve sales growth of between 28% and 30%.
Instead, Lisa Su knows that the impact of Coronavirus COVID-19 will be felt both for their company and for the entire industry. Therefore, they expect the first quarter sales to be adversely affected by this outbreak, even though it looks like they have already calculated this.
Revenue could reach a minimum in the first quarter
The fact that AMD has after various studies is that in the first quarter of the 2020 regular fiscal year it may come out. Specifically, AMD estimates revenue received in the first quarter of 1.8 billion with an estimated GAP of $ 50 million
The green shoots will arrive later this year, when the company expects an increase in orders for their EPYC server staff, to the extent that an annual market rate of 10% or more is estimated.
To this we need to increase the sales of Zen 3 and the introduction of its graphics cards RDNA 2, combined with its new death technology X3D by its construction Infinity third generation. Therefore, this looks like a more stimulating return on the stock market and the sector than a noticeable blow to the company's plans.
And that if the forecast was confirmed, AMD would have hurt Intel in a situation where the blues are still leading today.