The excess inventory forces retailers and OEMs to then cut prices to move inventory, thus resulting in reduced ASPs.The reduced ASPs also factor into AMD's lowered gross margin, which is now expected at 50% instead of 54%.AMD is also taking $160 million in charges for the "inventory, pricing, and related reserves in the graphics and client business."However, the company's Q2 disclosures foreshadowed potential looming issues — most analysts felt that the company's Q3 guidance was already below expectations.In August, Nvidia pre-announced a $1.4 billion miss due to plummeting GPU sales in the wake of a cryptomining collapse, ultimately resulting in poor quarterly results that found the company's stock being heavily punished."