AMD President and CEO Lisa Su speaks concerning the AMD EPYC processor during a keynote address at CES 2019 in Las Vegas, Nevada, United States, January 9, 2019.
Steve Marcus | Reuters
modern micro devices reported Earnings and sales for the primary quarter on Tuesday, which were barely above Wall Street expectations and provided corresponding guidance for the present quarter.
Shares fell 7% in prolonged trading.
Here’s the way it performed in comparison with LSEG consensus expectations for the quarter ended March:
- Earnings per share: 62 cents adjusted versus 61 cents expected
- revenue: $5.47 billion versus expected $5.46 billion.
AMD said it expects revenue of about $5.7 billion in the present quarter, consistent with Wall Street estimates of roughly the identical total revenue. That would correspond to annual growth of around 6%.
The company reported net income of $123 million, or 7 cents per share, compared with a net lack of $139 million, or 9 cents per share, within the year-ago period. Sales increased by around 2% in comparison with the previous yr.
AMD shares are up 14% in 2024. Despite meeting forecast estimates and signaling growth in AI chip sales, Tuesday’s results weren’t enough to forestall the stock from falling.
The chipmaker said its closely watched data center segment grew 80% year-on-year to $2.3 billion, due to sales of its MI300 series AI chips, which compete with Nvidia’s graphics processors.
CEO Lisa Su said that Microsoft, Meta and Oracle use AMD’s MI300X. AMD said it has sold over $1 billion price of chips since its launch within the fourth quarter of 2023.
AMD expects AI chip sales of $4 billion in 2024, up from a forecast of $3.5 billion in January. By comparison, Nvidia, the biggest supplier of AI server chips, reported $18.4 billion in revenue from its data center segment alone – mostly AI chips – for the January quarter, probably the most recent quarter for which financial results can be found.
Su told investors on Tuesday that the corporate is working on recent AI chips and current-generation successors. “We are getting much closer to our top AI customers. They actually give us important feedback on the roadmap,” Su said.
AMD also makes central processors, which are sometimes combined with advanced AI chips in servers. Su told analysts in a call that the corporate believes it has gained market share within the server CPU segment – likely by Intel. Su said AMD is seeing “signs of increasing demand” for its CPUs as a consequence of the AI server boom.
AMD’s weakest business unit was its gaming segment, which fell 48% year-over-year to $922 million, which the corporate said was as a consequence of lower chip sales for gaming consoles and PCs. AMD, for instance, produces chips for Sony’s PlayStation 5. AMD’s gaming revenue fell in need of a StreetAccount estimate of $969 million.
AMD’s original business, processors for chips and PCs, is reported as revenue in the client segment. AMD reported first-quarter revenue of $1.4 billion, up 85% annually, suggesting that last yr’s PC slump is over. AMD’s PC processors can run artificial intelligence programs locally, powering so-called “AI PCs” that many industry players are counting on to spice up sales of latest laptops and desktops.
The company’s embedded segment, which consists of products acquired as a part of the Xilinx acquisition in 2022, posted declining sales, falling 46% year-over-year to $846 million, below Wall Street expectations of $942 million remained.
