Superior Micro Gadgets reported that income in its third quarter was $5.8 billion, up 4% from a 12 months earlier and eight% sequentially as as new merchandise, AI chips and information heart tech grew within the quarter.
AMD makes the processors and graphics processing items (GPUs) utilized in AI machines, are driving on excessive demand for AI. AMD mentioned PC shopper income recovered within the quarter, hitting $1.5 billion in revenues, up 42% from a 12 months in the past. Gaming revenues, nonetheless, have been down 8% within the quarter.
“We delivered sturdy income and earnings development pushed by demand for our Ryzen 7000 collection PC processors and report server processor gross sales,” mentioned AMD CEO Lisa Su, in a press release. “Our information heart enterprise is on a big development trajectory based mostly on the energy of our EPYC CPU portfolio and the ramp of Intuition MI300 accelerator shipments to help a number of deployments with hyperscale, enterprise and AI clients.”
In after-hours buying and selling, AMD’s inventory is down 4.4% to $94.11 a share. AMD’s worth is $159 billion in total market capitalization, which is definitely greater than rival Intel at $153 billion. In a name with analysts, Su mentioned AMD gained market share in information heart chips within the quarter. She additionally thinks the corporate is positioned to realize extra share because the PC market returns to regular shopping for patterns.
Analysts anticipated Q3 earnings per share to come back in at 64 cents on income of $5.37 billion. GAAP web earnings for Q3 got here in at $299 million, or 18 cents a share, up 353% from a 12 months in the past. On a non-GAAP foundation, web earnings for Q3 was $1.13 billion, or 70 cents a share, up 4% from a 12 months in the past.
“We executed effectively within the third quarter, delivering year-over-year development in income, gross margin and earnings per share,” mentioned AMD CFO Jean Hu, in a press release. “Within the fourth quarter, we count on to see sturdy development in Information Heart and continued momentum in Consumer, partially offset by decrease gross sales within the Gaming section and extra softening of demand within the embedded markets.”
For the fourth quarter of 2023, AMD expects income to be roughly $6.1 billion, plus or minus $300 million. On the mid-point of the income vary, this represents year-over-year development of roughly 9% and sequential development of roughly 5%. Non-GAAP gross margin is anticipated to be roughly 51.5%.
AMD reported $1.5 billion in gross sales for the shopper group, up 42% from a 12 months in the past, pushed primarily by greater Ryzen cell processor gross sales. Income grew 46% sequentially pushed by a rise in AMD Ryzen 7000 Collection CPU gross sales. The group returned to profitability.
For the info heart, AMD gross sales have been flat at $1.6 billion in comparison with final 12 months. That was on account of development in 4th Gen AMD Epyc CPU gross sales, offset by a decline in adaptive system-on-chip (SoC) information heart merchandise.
Income elevated 21% sequentially as buyer adoption of 4th Gen AMD Epyc CPUs accelerated through the quarter. And AMD Intuition MI300A and MI300X GPUs are on observe for quantity manufacturing within the fourth quarter to help deployments with a number of main HPC, cloud and AI clients.
Embedded section income was $1.2 billion, down 5% year-over-year primarily on account of a lower in income within the communications market. Income decreased 15% sequentially on account of stock correction at clients in a number of finish markets.
Gaming section income was $1.5 billion, down 8% year-over-year, primarily on account of a decline in semi-custom income, partially offset by a rise in AMD Radeon GPU gross sales. Income declined 5% sequentially on account of decrease semi-custom gross sales. That might imply that recreation console gross sales slowed a bit, as we’re within the fourth 12 months of the console cycle.
Final week, AMD’s rival Intel reported that its third-quarter income was $14.2 billion, down 8% from a 12 months earlier. Third-quarter earnings per share (EPS) have been 7 cents a share, whereas non-GAAP EPS was 41 cents a share.
Cloud adoption of AMD Epyc processors continues to develop considerably, with almost 100 new situations from Microsoft Azure, AWS, Oracle and others out there for preview and basic entry, together with new AWS situations powered by 4th Gen AMD Epyc CPUs that ship management efficiency and vitality effectivity. Information heart GPUs noticed new traction for the subsequent technology of merchandise, Su mentioned.
Throughout the quarter, AMD expanded the 4th Gen Epyc CPU portfolio with the launch of the AMD Epyc 8004 Collection processors, function constructed to ship distinctive vitality effectivity and efficiency for cloud providers, clever edge and telco.
AMD additionally made vital progress powering pervasive AI throughout the cloud, edge and finish level units:
AMD accomplished the acquisition of open-source AI software program knowledgeable Nod.ai, increasing the corporate’s open AI software program capabilities. Nod.ai has developed an industry-leading software program expertise that accelerates the deployment of AI options optimized for AMD Intuition information heart accelerators, Ryzen AI processors, EPYC processors, Versal SoCs and Radeon GPUs.
AMD introduced the AMD Ryzen Threadripper PRO 7000 WX-Collection and Ryzen Threadripper 7000 processors, delivering excellent efficiency for essentially the most demanding desktop platforms. Ryzen Threadripper PRO 7000 WX-Collection processors shall be out there later this 12 months to DIY clients, SI companions and thru OEM companions together with Dell Applied sciences, HP and Lenovo.
AMD has $16 billion in present property and $7 billion in liabilities. That’s a fairly good monetary situation in comparison with a few years in the past.
AMD introduced plans to speculate roughly $400 million over the subsequent 5 years to broaden analysis, improvement and engineering operations in India, together with the addition of roughly 3,000 new engineering roles by the top of 2028.
There are greater than 50 laptop computer designs powered by Ryzen AI chips.