Advanced Micro Devices Inc (AMD, Financial) announced its third-quarter financial results for 2023 on October 31, 2023. The company reported a revenue of $5.8 billion, marking a 4% increase from the same period last year. The growth was primarily driven by strong demand for the Ryzen 7000 series PC processors and record server processor sales.
Financial Highlights
AMD's gross profit for the quarter was $2.747 billion, up 17% from Q3 2022. The gross margin improved to 47%, a 5 percentage point increase from the same period last year. Operating income was reported at $224 million, a significant improvement from a loss of $64 million in Q3 2022. Net income for the quarter was $299 million, up 353% from $66 million in Q3 2022. Diluted earnings per share were $0.18, up 350% from $0.04 in Q3 2022.
Segment Performance
The Data Center segment reported revenue of $1.6 billion, flat year-over-year, with growth in 4th Gen AMD EPYCâ„¢ CPU sales offset by a decline in adaptive System-on-Chip (SoC) data center products. The Client segment reported revenue of $1.5 billion, up 42% year-over-year, driven primarily by higher Ryzen mobile processor sales. The Gaming segment reported revenue of $1.5 billion, down 8% year-over-year, primarily due to a decline in semi-custom revenue. The Embedded segment reported revenue of $1.2 billion, down 5% year-over-year primarily due to a decrease in revenue in the communications market.
Future Outlook
For the fourth quarter of 2023, AMD expects revenue to be approximately $6.1 billion, plus or minus $300 million. 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%.
Key Takeaways
The Q3 2023 financial results highlight AMD's strong performance driven by robust demand for its Ryzen 7000 series PC processors and record server processor sales. The company's focus on innovation and delivering high-performance computing solutions continues to pay off, as evidenced by the significant growth in revenue, net income, and gross margin. Looking ahead, AMD expects to see strong growth in the Data Center and Client segments, which is expected to offset lower sales in the Gaming segment and additional softening of demand in the embedded markets.
Explore the complete 8-K earnings release (here) from Advanced Micro Devices Inc for further details.
