AMD Chair and CEO Lisa Su speaks on the AMD Keynote handle through 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 initially dropped about 4% in prolonged buying and selling however recovered after the corporate gave a forecast for its AI chip enterprise.
This 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 shareRevenue: $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 had been on the lookout for income of $6.37 billion.
Web earnings within the third quarter rose to $299 million, or 18 cents per share, from $66 million, or 4 cents per share a yr in the past. Income elevated 4% from $5.6 billion a yr earlier.
Information heart, which incorporates AMD’s server processors and AI chips referred to as GPUs, reported $1.6 billion in gross sales, flat from a yr earlier. AMD stated its gross sales of server CPUs grew. AMD additionally stated that it expects sturdy development in its information heart enterprise within the fourth quarter.
AMD is among the few chipmakers able to making the type of high-end 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.
“We now anticipate information heart GPU income to be roughly $400 million within the fourth quarter and exceed $2 billion in 2024 as income ramps all year long,” Su stated.
On a name with analysts, Su additionally additionally talked about latest AI acquisitions and enhancements within the firm’s AI software program suite.
“Throughout the AI area, we have had superb buyer engagement throughout the board from hyperscalers to OEMs, enterprise prospects, and a number of the new AI startups which can be on the market,” Su stated.
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.
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.