AMD CEO Lisa Su makes the hole pronunciation at COMPUTEX discussion board in Taipei, Taiwan June 3, 2024.
Ann Wang | Reuters
Complex Micro Gadgets reported third-quarter effects Tuesday, with profits in form with forecasts and income that somewhat beat expectancies.
Right here’s how the corporate did, when put next with LSEG estimates for the quarter finishing Sept. 28:
Profits in line with proportion: 92 cents adjusted vs. 92 cents anticipated
Earnings: $6.82 billion vs. $6.71 billion anticipated
AMD mentioned its noteceable knowledge heart industry doubled in gross sales for the second one quarter in a row, however general income steering for the fourth quarter was once in form with consensus expectancies.
AMD stocks fell 6% on Tuesday in prolonged buying and selling.
AMD mentioned it anticipated about $7.5 billion in gross sales within the tide quarter, in form with consensus expectancies of $1.16 in adjusted profits in line with proportion on $7.54 billion in income. That will be a 22% year-over-year moderate for the December quarter.
The chipmaker reported internet source of revenue of $771 million, or 47 cents in line with proportion, when put next with $299 million, or 18 cents in line with proportion, a 12 months in the past. Total cruel absolute bypass, or MAD, income was once up 18% on an annual foundation.
AMD stocks are up about 20% up to now in 2024, even supposing opponents equivalent to Nvidia and Broadcom have had a lot higher features all through the similar length, pushed by way of the expanding call for for AI chips. AMD is the second-largest supplier of knowledge heart graphics processing devices, or GPUs, that are old to coach and deploy massive generative AI fashions.
In October, AMD introduced a unutilized synthetic judgement chip referred to as the MI235X and mentioned it anticipated the AI GPU marketplace to be significance $500 billion by way of 2028. The corporate additionally mentioned previous this 12 months that it anticipated about $4 billion in gross sales this 12 months in overall AI chips, or about 15% of the corporate’s general income.
“Customer and partner interest for MI325X is high. Production shipments are planned to start this quarter,” mentioned AMD CEO Lisa Su on a choice with analysts.
AMD’s AI chips are reported in its knowledge heart department, which greater than doubled on an annual foundation to $3.5 billion in overall gross sales. AMD mentioned it was once principally pushed by way of the sturdy gross sales of its Intuition-branded GPUs for AI. Total knowledge heart income was once up 122% 12 months over 12 months.
AMD’s improper margin expanded to 54%, which the corporate mentioned was once on account of upper knowledge heart income.
AMD additionally makes central processing chips for pc and servers. PC gross sales are reported in AMD’s shopper department, which grew 23% all through the quarter to $1.9 billion. All over the quarter, AMD’s chips have been incorporated in high-end pc advertised by way of Microsoft as “Copilot+” machines that may run complex AI incorporated with Home windows.
AMD additionally makes chips for gaming consoles and PCs. Its gaming division slumped, with gross sales sliding 68% 12 months over 12 months, which the corporate blamed on a trim in “semi-custom revenue,” which contains customized chips for sport consoles such because the Sony PlayStation 5.
The corporate’s embedded industry, which contains less-expensive chips for business and alternative programs, fell 25% once a year to $927 million in gross sales.
