>Advanced Micro Devices Inc., which disappointed Wall Street in the fourth quarter with its artificial-intelligence chip forecast, may be facing another risk —an oversupply of chips to the personal-computer market.
>Bernstein Research analyst Stacy Rasgon said in a note to clients that he and his team compared data from PC unit shipments in the fourth quarter and the number of central processing units sold by both AMD and INTC in the fourth quarter. He concluded that the PC industry is starting to see a “material overbuild” again, with more supply in the channel than demand.
>The anticipation last year of new tariffs from the Trump administration could be the reason PC makers appear to have ordered more chips than they need for the systems they can immediately ship.
>“We believe the overall PC channel is starting to see material overbuild once again, possibly due in part to the threat of tariffs coming back into the picture,” Rasgon said in a note Thursday. He pointed out that overall CPU shipments were about 13% higher than the growth rate of PCs in the fourth quarter, and well above the 2% overshipment in the third quarter.
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