Superior Micro Gadgets (AMD) This fall earnings reveal the semiconductor and pc processor producer ended 2023 on a excessive observe. The corporate’s This fall income reached $6.2 billion, up 10% year-on-year, in-line with analyst estimates.
AMD’s information middle and shopper segments are driving income development for the corporate. The corporate is seeing sustained and record-breaking development in its information facilities primarily based on ramp of AMD Intuition GPUs and robust demand for EPYC CPUs. Whereas the shopper phase was flat in comparison with final yr, vacation gross sales for the AMD Ryzen 7000 Sequence processors drove the quarterly enhance.
In distinction, its gaming and embedded segments noticed important declines primarily based on broader market developments. In gaming, greater Radeon GPU gross sales partially offset decrease income from semi-custom income for console producers. Likewise, the embedded phase is slowing as a consequence of stock discount actions from a number of finish markets.
AMD FY2023 and ahead outlook
AMD revenues totaled $22.7 billion in 2023, down 4% year-on-year. Information middle and embedded segments drove income will increase however couldn’t overcome decrease revenues from shopper and gaming.
The corporate attributed its 7% information middle development to demand for its AMD Intuition GPUs and 4th Gen AMD EPYC CPUs. The embedded phase grew 17% because of its acquisition of Xilinx for $35 billion in inventory. In distinction, the shopper and gaming segments contracted by 25% and 9% respectively as a consequence of decrease PC and console demand.
Trying ahead, AMD expects its Q1 income to achieve $5.4 billion, plus or minus $300 million. The corporate expects information middle income to stay flat with a seasonal decline in server gross sales offset by elevated Intuition GPU income. Nevertheless, the corporate expects shopper, embedded and gaming phase gross sales to say no.
“We now count on annual income to say no by a major double digit proportion year-over-year as provide caught up with demand in 2023 and we enter the fifth yr of what has been a really sturdy console cycle,” stated CEO Lisa Su within the firm’s ready remarks.