AMD disclosed in its financial report for the fourth quarter of 2022 that its client business (including desktop CPUs and GPUs) fell by 51%, but compared to rival Intel’s rare and huge losses, AMD still managed to make a small profit. AMD CEO Lisa Su (Lisa Su) said in an investor conference call that the company has intentionally reduced supply in the past two quarters to balance supply and demand. This move is not for some people’s so-called “raise the price”. AMD’s net profit margin in the second quarter of last year was 7%, and only 2% in the third quarter. AMD has slashed prices a little over a month after releasing its Zen4 processors. Supply reductions are meant to reduce inventory, which depreciates faster than actual product is sold. After the epidemic is over and inflation is high, far fewer people are buying CPUs and GPUs. Reducing supply can avoid the collapse of prices and the disappearance of profits.
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