AMD’s Q3 revenues hit $5.8B, up 4% as PC CPUs grow again

31.10.2023 - 21:07 / venturebeat.com / Lisa Su

Advanced Micro Devices reported that revenue in its third quarter was $5.8 billion, up 4% from a year earlier and 8% sequentially as as new products, AI chips and data center tech grew in the quarter.

AMD makes the processors and graphics processing units (GPUs) used in AI machines, are riding on high demand for AI. AMD said PC client revenue recovered in the quarter, hitting $1.5 billion in revenues, up 42% from a year ago. Gaming revenues, however, were down 8% in the quarter.

“We delivered strong revenue and earnings growth driven by demand for our Ryzen 7000 series PC processors and record server processor sales,” said AMD CEO Lisa Su, in a statement. “Our data center business is on a significant growth trajectory based on the strength of our EPYC CPU portfolio and the ramp of Instinct MI300 accelerator shipments to support multiple deployments with hyperscale, enterprise and AI customers.”

In after-hours trading, AMD’s stock is down 4.4% to $94.11 a share. AMD’s value is $159 billion in overall market capitalization, which is actually higher than rival Intel at $153 billion. In a call with analysts, Su said AMD gained market share in data center chips in the quarter.

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Analysts expected Q3 earnings per share to come in at 64 cents on revenue of $5.37 billion. GAAP net income for Q3 came in at $299 million, or 18 cents a share, up 353% from a year ago. On a non-GAAP basis, net income for Q3 was $1.13 billion, or 70 cents a share, up 4% from a year ago.

“We executed well in the third quarter, delivering year-over-year growth in revenue, gross margin and earnings per share,” said AMD CFO Jean Hu, in a statement. “In the fourth quarter, we expect to see strong growth in Data Center and continued momentum in Client, partially offset by lower sales in the Gaming segment and additional softening of demand in the embedded markets.”

For the fourth quarter of 2023, AMD expects revenue to be approximately $6.1 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 9% and sequential growth of approximately 5%. Non-GAAP gross margin is expected to be approximately 51.5%.

AMD reported $1.5 billion in sales for the client group, up 42% from a year ago, driven primarily by higher Ryzen mobile processor sales. Revenue grew 46% sequentially driven by an increase in AMD Ryzen 7000 Series CPU sales.

For the data center, AMD sales were flat at $1.6 billion compared to last year. That was due to growth in 4th Gen AMD Epyc CPU sales, offset by a