In its Q4-2022 earnings call, AMD disclosed to investors that it intentionally undersold chips to maintain high prices and avoid unsold inventory. The PC market has experienced a significant decline, leading to decreased demand for chips. To combat this, AMD chose to limit its chip shipments and sacrifice some revenue, rather than face the possibility of unsold inventory and low margins. The strategy paid off, as the company reported better than expected Q4 results and received positive feedback from investors.
