AMD Chair and CEO Lisa Su speaks on the AMD Keynote tackle in the course of the Shopper Electronics Present (CES) on January 4, 2023 in Las Vegas, Nevada.
Robyn Beck | AFP | Getty Pictures
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 is how the corporate did versus LSEG (previously Refinitiv) consensus estimates for the quarter ending September:
- EPS: 70 cents adjusted, versus expectations of 68 cents per share
- Income: $5.8 billion, versus expectations of $5.7 billion
For the fourth quarter, AMD stated it expects about $6.1 billion in gross sales, whereas analysts have been in search of income of $6.37 billion.
Internet earnings within the third quarter rose to $299 million, or 18 cents per share, from $66 million, or 4 cents per share a 12 months in the past. Income elevated 4% from $5.6 billion a 12 months earlier.
Income in AMD’s Shopper group, which incorporates gross sales from PC processors, rose 42% on an annual foundation to $1.5 billion, pushed by PC chips.
Final week, chief rival Intel reported third-quarter earnings that beat expectations for revenue and gross sales, however nonetheless confirmed an annual gross sales decline.
Information heart, which incorporates AMD’s server processors and AI chips, reported $1.6 billion in gross sales, flat from a 12 months earlier. AMD stated its gross sales of server CPUs grew. AMD additionally stated that it expects robust development in its knowledge heart enterprise within the fourth quarter.
AMD is among the few chipmakers able to making the type of high-end graphics processing models (GPUs) wanted to coach and deploy generative AI fashions. That market is dominated by Nvidia. AMD stated its forthcoming AI chips, the MI300A and MI300X, are “on observe” for quantity manufacturing within the present quarter.
“Our knowledge heart enterprise is on a major development trajectory based mostly on the power of our EPYC CPU portfolio and the ramp of Intuition MI300 accelerator shipments,” AMD CEO Lisa Su stated in an announcement, highlighting the corporate’s AI enterprise.
AMD’s embedded section income declined 5% to $1.2 billion, which the corporate blamed on a weak communications market. That features components for networking in addition to the corporate’s FPGA unit that it acquired when it purchased Xilinx.
Gross sales in AMD’s gaming section declined 8% to $1.5 billion, due to fewer “semi-custom” chip gross sales. That is what the corporate calls its enterprise that makes processors for consoles like Sony’s PlayStation 5.
