Susquehanna analyst Christopher Rolland lowered price targets on Advanced Micro Devices (NASDAQ:) and Nvidia (NASDAQ:) to reflect findings from the firm’s Q22 edition of PC-SIGnals.

This report examines the models of PC/CPU/GPU and trends in semiconductor content within the PC supply chain.

These are the three main takeaways of this report:

1) The retail GPU pricing is now at an all-time low, with the MSRP markup falling from +77% QOQ to +41% QOQ.

2) ODM constructions and talks with the channel point to a slowing down in demand. However, it is most likely that Chinese COVID shutdowns are exacerbated.

3) Intel’s Alder Lake gained share in the quarter, as the more competitive CPU and aggressive pricing appear to be slowing AMD’s share gain trajectory.

AMD is now able to take some GPU market share away from Nvidia, while Nvidia has retained discrete GPU shares in laptops. Marvell’s (NASDAQ:) SSD controller market share dropped by 5% QOQ

“Overall, underlying trends were modestly negative for PC suppliers (INTC, AMD, NVDA). We continue to highlight ‘the unknowns’ in 2022 regarding the sustainability of the demand environment (volatile crypto prices, end of WFH) and the ever-evolving supply issues (COVID outbreaks/China lockdowns, war in Ukraine, earthquakes in Asia),” Rolland said in a client note.

New prices for AMD and NVDA will be $160.00 & $320.00 respectively, down from $180.00 & $360.00.

By Senad Karaahmetovic