Big picture: A respected analyst recently downgraded its revenue forecasts for AMD’s consumer processors, GPUs and gaming consoles divisions for 2023. It makes sense that consumers would cut back on non-essential spending such as high-end electronics given rising inflation and the ongoing war in Ukraine. Meanwhile, AMD’s server revenue could continue to grow at an impressive rate.

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According to analyst Gus Richard, AMD’s revenue from desktop and laptop processors will reject down 6% year-over-year in 2023, while consumer GPU sales are down 7%. Overall, this market segment will bring the company about $675 million less than in 2022.

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Friendly reminder: PlayStation 5 and Xbox Series X/S are powered by AMD SoCs. Richard estimates that the company’s gaming console revenue will grow by only $400 million, or about 8 percent year-on-year. That figure is well below his previous forecast of $740 million in growth.

Meanwhile, next year, Xilinx’s revenue will decline by 6 percent. AMD completed acquisition a semiconductor company that mainly sells FPGAs and CPLDs.

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However, AMD’s corporate earnings could have been much better, up 55 percent year on year, or about $3.1 billion. Richard says that AMD’s EPYC server processors will be “on top of the stack next year,” which will help mitigate the impact of declining sales in other market segments.

The analyst also slightly adjusted AMD’s share price target from $97 to $95. The company’s share price is currently $73 after falling about 30 percent over the past month.

Earlier this week we learned what AMD, Apple and Nvidia are planning cut back on your waffle orders from TSMC due to declining consumer demand for high-end electronics.