AMD Reports Third Quarter 2023 Financial Results
SANTA CLARA, Calif., Oct. 31, 2023 — AMD (NASDAQ:AMD) today announced revenue for the third quarter of 2023 of $5.8 billion, gross margin of 47%, operating income of $224 million, net income of $299 million and diluted earnings per share of $0.18. On a non-GAAP((*) basis, gross margin was 51%, operating income was $1.3 billion, net income was $1.1 billion and diluted earnings per share was $0.70.
“We delivered strong revenue and earnings growth driven by demand for our Ryzen 7000 series PC processors and record server processor sales,” said AMD Chair and CEO Dr. Lisa Su. “Our data center business is on a significant growth trajectory based on the strength of our EPYC CPU portfolio and the ramp of Instinct MI300 accelerator shipments to support multiple deployments with hyperscale, enterprise and AI customers.”
“We executed well in the third quarter, delivering year-over-year growth in revenue, gross margin and earnings per share,” said AMD EVP, CFO and Treasurer Jean Hu. “In the fourth quarter, we expect to see strong growth in Data Center and continued momentum in Client, partially offset by lower sales in the Gaming segment and additional softening of demand in the embedded markets.”
GAAP Quarterly Financial Results
Q3 2023 Q3 2022 Y/Y Q2 2023 Q/Q
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Revenue ($M) $5,800 $5,565 Up 4% $5,359 Up 8%
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Gross profit ($M) $2,747 $2,354 Up 17% $2,443 Up 12%
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Gross margin 47% 42% Up 5 ppts 46% Up 1 ppt
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Operating expenses ($M) $2,533 $2,426 Up 4% $2,471 Up 3%
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Operating income (loss) ($M) $224 $(64) Up 450% $(20) Up 1,220%
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Operating margin 4% (1%) Up 5 ppts 0% Up 4 ppts
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Net income ($M) $299 $66 Up 353% $27 Up 1,007%
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Diluted earnings per share $0.18 $0.04 Up 350% $0.02 Up 800%
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Non-GAAP(*) Quarterly Financial Results
Q3 2023 Q3 2022 Y/Y Q2 2023 Q/Q
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Revenue ($M) $5,800 $5,565 Up 4% $5,359 Up 8%
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Gross profit ($M) $2,963 $2,776 Up 7% $2,665 Up 11%
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Gross margin 51% 50% Up 1 ppt 50% Up 1 ppt
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Operating expenses ($M) $1,697 $1,520 Up 12% $1,605 Up 6%
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Operating income ($M) $1,276 $1,264 Flat $1,068 Up 19%
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Operating margin 22% 23% Down 1 ppt 20% Up 2 ppts
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Net income ($M) $1,135 $1,095 Up 4% $948 Up 20%
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Diluted earnings per share $0.70 $0.67 Up 4% $0.58 Up 21%
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Quarterly Segment Summary
-- Data Center segment revenue was $1.6 billion, flat year-over-year, as
growth in 4th Gen AMD EPYC(TM) CPU sales was offset by a decline in
adaptive System-on-Chip (SoC) data center products.
-- Revenue increased 21% sequentially as customer adoption of 4th Gen
AMD EPYC CPUs accelerated during the quarter.
-- AMD Instinct(TM) MI300A and MI300X GPUs are on track for volume
production in the fourth quarter to support deployments with
several leading HPC, cloud and AI customers.
-- Client segment revenue was $1.5 billion, up 42% year-over-year driven
primarily by higher Ryzen mobile processor sales.
-- Revenue grew 46% sequentially driven by an increase in AMD
Ryzen(TM) 7000 Series CPU sales.
-- Gaming segment revenue was $1.5 billion, down 8% year-over-year,
primarily due to a decline in semi-custom revenue, partially offset by an
increase in AMD Radeon(TM) GPU sales.
-- Revenue declined 5% sequentially due to lower semi-custom sales.
-- Embedded segment revenue was $1.2 billion, down 5% year-over-year
primarily due to a decrease in revenue in the communications market.
-- Revenue decreased 15% sequentially due to inventory correction at
customers in several end markets.
Recent PR Highlights
-- Cloud adoption of AMD EPYC processors continues to grow significantly,
with nearly 100 new instances from Microsoft Azure, AWS, Oracle and
others available for preview and general access, including new AWS
instances powered by 4th Gen AMD EPYC CPUs that deliver leadership
performance and energy efficiency.
-- AMD expanded the 4th Gen EPYC CPU portfolio with the launch of the AMD
EPYC 8004 Series processors, purpose built to deliver exceptional energy
efficiency and performance for cloud services, intelligent edge and
telco.
-- AMD made significant progress powering pervasive AI across the cloud,
edge and end point devices:
-- AMD completed the acquisition of open-source AI software expert
Nod.ai, expanding the company's open AI software capabilities.
Nod.ai has developed an industry-leading software technology that
accelerates the deployment of AI solutions optimized for AMD
Instinct data center accelerators, Ryzen AI processors, EPYC
processors, Versal(TM) SoCs and Radeon GPUs.
-- AMD acquired AI software leader Mipsology. With proven expertise
delivering AI software and solutions running on top of AMD
adaptive computing silicon, the Mipsology team will help develop
the full AMD AI software stack and expand the open ecosystem of
software tools, libraries and models.
-- AI startup Lamini unveiled that it has been running
production-ready Large Language Models (LLMs) exclusively on AMD
Instinct accelerators, enabling enterprise customers to deploy
LLMs finetuned for their specific data across hundreds of AMD
Instinct MI250 GPUs with only three lines of code.
-- AMD expanded its AMD Ryzen processor lineup, delivering more performance
and capabilities for enthusiasts, gamers and creators:
-- AMD announced the AMD Ryzen Threadripper(TM) PRO 7000 WX-Series
and Ryzen Threadripper 7000 processors, delivering outstanding
performance for the most demanding desktop platforms. Ryzen
Threadripper PRO 7000 WX-Series processors will be available later
this year to DIY customers, SI partners and through OEM partners
including Dell Technologies, HP and Lenovo.
-- AMD launched new Ryzen 7045HX3D Series mobile processors, the
first mobile processor with AMD 3D V-Cache(TM) technology, and the
world's fastest mobile gaming processor.
-- AMD launched the AMD Ryzen 5 5600X3D processor, delivering
incredible gaming performance with AMD 3D V-cache technology.
-- Leadership AMD adaptive and embedded computing products are enabling new
capabilities in key markets:
-- AMD extended its leadership in radiation-tolerant, space-grade
compute solutions with the announcement of the Versal AI Edge
XQRVE2302, the second device in the Versal adaptive SoC portfolio
to be qualified for space flight.
-- AMD announced the AMD Alveo(TM) UL3524 accelerator card, a new
fintech accelerator designed for electronic trading applications
and AI-enabled trading strategies.
-- AMD announced the AMD Kria(TM) K24 System-on-Module (SOM) and
KD240 Drives Starter Kit, offering power-efficient compute in a
small form factor for cost-sensitive industrial and commercial
edge applications.
-- New AMD graphics processors and software features are enabling incredible
experiences for gamers and professionals:
-- AMD introduced the flagship laptop graphics processor, AMD Radeon
RX 7900M, the fastest AMD Radeon GPU ever developed for laptops,
delivering desktop-class performance for gaming and content
creation.
-- AMD launched the Radeon RX 7800 XT and Radeon RX 7700 XT graphics
cards, optimized to deliver incredibly high-performance,
high-refresh 1440p gaming experiences for demanding AAA and
esports titles.
-- AMD launched FidelityFX(TM) Super Resolution 3 in Forspoken and
Immortals of Aveum, featuring new frame generation technology that