AMD Chair and CEO Lisa Su speaks at the AMD Keynote address throughout the Consumer Electronics Show (CES) on January 4, 2023 in Las Vegas, Nevada.
Robyn Beck|AFP|Getty Images
AMD reported third-quarter revenues on Tuesday that beat expert expectations, though the chipmaker provided a weaker-than-expected projection.
Here’s how the business did versus LSEG (previously Refinitiv) agreement approximates for the quarter ended in September:
- EPS: 70 cents, changed, versus 68 cents anticipated
- Revenue: $5.8 billion, versus $5.7 billion anticipated
For the 4th quarter, AMD stated it anticipates about $6.1 billion in sales, while experts were trying to find income of $6.37 billion.
AMD is among the couple of chipmakers efficient in making the type of high-end graphics processing systems (GPUs) required to train and release generative expert system designs. That market is controlled by Nvidia AMD stated its upcoming AI chips, the MI300 A and MI300 X, are “on track” for volume production in the existing quarter.
The stock at first dropped about 4% in prolonged trading however recuperated after the business provided a rosy 2024 projection for its AI chip service.
“We now expect data center GPU revenue to be approximately $400 million in the fourth quarter and exceed $2 billion in 2024 as revenue ramps throughout the year,” AMD CEO Lisa Su stated on the revenues call.
Net earnings in the 3rd quarter increased to $299 million, or 18 cents per share, from $66 million, or 4 cents per share a year back. Revenue increased 4% from $5.6 billion a year previously.
Data center, that includes AMD’s server processors and AI chips called GPUs, reported $1.6 billion in sales, flat from a year previously. AMD stated its sales of server CPUs grew. The chipmaker included it anticipates strong development in its information center service in the 4th quarter.
“We would like to be a significant player in this market,” Su stated.
On the call, Su likewise discussed current AI acquisitions and enhancements in the business’s AI software application suite.
“I think we all see the growth in generative AI workloads and the fact is we’re just at the very early innings of people truly adopting it for enterprise business productivity applications,” Su stated.
Revenue in AMD’s Client group, that includes sales from PC processors, increased 42% year over year to $1.5 billion, driven by PC chips.
Last week, chief competitor Intel reported third-quarter revenues that beat expectations for earnings and sales, however still revealed a profits decrease year over year.
AMD’s ingrained section income was off 5% to $1.2 billion, which the business blamed on a weak interactions market. That consists of parts for networking in addition to the business’s field programmable gate range system that it obtained when it purchased Xilinx.
Sales in AMD’s video gaming section decreased 8% to $1.5 billion, due to the fact that of less “semi-custom” chip sales. That’s what the business calls its service that makes processors for consoles like Sony’s PlayStation 5.
VIEW: Wedbush’s Matt Bryson responds to AMD’s Q3 revenues
