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Superior Micro Units (AMD) This autumn earnings reveal the semiconductor and laptop processor producer ended 2023 on a excessive word. The corporate’s This autumn income reached $6.2 billion, up 10% year-on-year, in-line with analyst estimates.
AMD’s information heart and shopper segments are driving income development for the corporate. The corporate is seeing sustained and record-breaking development in its information facilities based mostly on ramp of AMD Intuition GPUs and robust demand for EPYC CPUs. Whereas the shopper section was flat in comparison with final yr, vacation gross sales for the AMD Ryzen 7000 Collection processors drove the quarterly increase.
In distinction, its gaming and embedded segments noticed vital declines based mostly on broader market tendencies. In gaming, greater Radeon GPU gross sales partially offset decrease income from semi-custom income for console producers. Likewise, the embedded section is slowing on account 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. Knowledge heart and embedded segments drove income will increase however couldn’t overcome decrease revenues from shopper and gaming.
The corporate attributed its 7% information heart development to demand for its AMD Intuition GPUs and 4th Gen AMD EPYC CPUs. The embedded section grew 17% due to its acquisition of Xilinx for $35 billion in inventory. In distinction, the shopper and gaming segments contracted by 25% and 9% respectively on account of decrease PC and console demand.
Trying ahead, AMD expects its Q1 income to succeed in $5.4 billion, plus or minus $300 million. The corporate expects information heart 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 section gross sales to say no.
“We now anticipate annual income to say no by a major double digit share 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.