AMD Chair and CEO Lisa Su speaks on the AMD Keynote deal with throughout the Consumer Electronics Show (CES) on January 4, 2023 in Las Vegas, Nevada.
Robyn Beck | AFP | Getty Images
AMD reported third-quarter earnings on Tuesday that beat analyst expectations, although the chipmaker issued a weaker-than-expected forecast. The inventory dropped about 4% in prolonged buying and selling.
Here’s how the corporate did versus LSEG (previously Refinitiv) consensus estimates:
- EPS: 70 cents adjusted, versus expectations of 68 cents per share
- Revenue: $5.8 billion, versus expectations of $5.7 billion
For the fourth quarter, AMD mentioned it expects about $6.1 billion in gross sales, whereas analysts have been on the lookout for income of $6.37 billion.
Net revenue within the third quarter rose to $299 million, or 18 cents per share, from $66 million, or 4 cents per share a yr in the past. Revenue elevated 4% from $5.6 billion a yr earlier.
Revenue in AMD’s Client group, which incorporates gross sales from PC processors, rose 42% on an annual foundation to $1.5 billion, pushed by PC chips.
Last week, chief rival Intel reported third-quarter earnings that beat expectations for revenue and gross sales, however nonetheless confirmed an annual gross sales decline.
Data middle, which incorporates AMD’s server processors and AI chips, reported $1.6 billion in gross sales, flat from a yr earlier. AMD mentioned its gross sales of server CPUs grew. AMD additionally mentioned that it expects robust progress in its information middle enterprise within the fourth quarter.
AMD is likely one of the few chipmakers able to making the sort of high-end graphics processing items (GPUs) wanted to coach and deploy generative AI fashions. That market is dominated by Nvidia. AMD mentioned its forthcoming AI chips, the MI300A and MI300X, are “on observe” for quantity manufacturing within the present quarter.
“Our information middle enterprise is on a big progress trajectory based mostly on the energy of our EPYC CPU portfolio and the ramp of Instinct MI300 accelerator shipments,” AMD CEO Lisa Su mentioned in a press release, highlighting the corporate’s AI enterprise.
AMD’s embedded phase income declined 5% to $1.2 billion, which the corporate blamed on a weak communications market. That contains components for networking in addition to the corporate’s FPGA unit that it acquired when it purchased Xilinx.
Sales in AMD’s gaming phase declined 8% to $1.5 billion, due to fewer “semi-custom” chip gross sales. That’s what the corporate calls its enterprise that makes processors for consoles like Sony’s PlayStation 5.