AMD published their Q4-2022 profits, admitting to investors that it purposefully undersupplied chips in the second half of 2022 in order to maintain high prices and avoid surplus inventory.

 This comes as the PC market experiences a considerable drop in demand. According to CEO Dr. Lisa Su, this practice will be limited in Q1. The chipmaking industry has seen a dip in demand compared to the surge during the COVID-19 pandemic lockdowns. With the return of white-collar workers to the office and rising energy prices, the demand for PCs has decreased. However, the undersupply has artificially kept prices high, with graphics cards and desktop processors still being overpriced.

AMD CEO Lisa Su stated to undership GPUs to "balance supply and demand." "We will undership, to a lesser extent, in Q1," she added.

AMD decided it would rather make lower revenues on fewer shipped chips than end up with a surplus of unsold inventory that would have to be sold at a low margin or even a loss. The company's Q4-2022 results exceeded expectations and were well-received by investors.

AMD Confirms Strategy of Restraining Chip Supply to Maintain High CPU and GPU Prices