AMD Chairman and CEO Lisa Su speaks during the AMD Keynote address during 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 stock fell about 4% in extended trading.
Here’s how the company fared compared to LSEG (formerly Refinitiv) consensus estimates:
- EPS: 70 cents adjusted, versus expectations of 68 cents per share
- Gain: $5.8 billion, versus expectations of $5.7 billion
For the fourth quarter, AMD expects revenue of about $6.1 billion, while analysts expected revenue of $6.37 billion.
Third-quarter net income rose to $299 million, or 18 cents per share, from $66 million, or 4 cents per share, a year ago. Revenue rose 4% from $5.6 billion a year earlier.
Revenue in AMD’s Client group, which includes PC processor revenue, rose 42% year over year to $1.5 billion, driven by PC chips.
Last week, main rival Intel reported third-quarter earnings that exceeded expectations for earnings and revenue, but still showed a year-over-year revenue decline.
The data center, which includes AMD’s server processors and AI chips, reported revenue of $1.6 billion, flat from a year earlier. AMD said server CPU sales were growing. AMD also said it expects strong growth from its data center business in the fourth quarter.
AMD is one of the few chipmakers capable of making the kind of high-performance graphics processing units (GPUs) needed to train and deploy generative AI models. That market is dominated by Nvidia. AMD said its upcoming AI chips, the MI300A and MI300X, are “on track” for volume production in the current quarter.
“Our data center business is on a significant growth trajectory based on the strength of our EPYC CPU portfolio and increased shipments of Instinct MI300 accelerators,” AMD CEO Lisa Su said in a statement, describing the company’s AI business. the company emphasized.
AMD’s embedded segment revenue fell 5% to $1.2 billion, which the company blamed on a weak communications market. That includes parts for networking and the company’s FPGA unit that it bought when it bought Xilinx.
AMD’s gaming segment revenue fell 8% to $1.5 billion, due to fewer sales of “semi-custom” chips. That’s what the company calls its company that makes processors for consoles such as Sony’s PlayStation 5.