Advanced Micro Devices reported third-quarter outcomes Tuesday, with income in response to projections and income that just a little defeated assumptions.
Here’s precisely how the agency did, in comparison with LSEG worth quotes for the quarter finishingSept 28:
- Earnings per share: 92 cents modified vs. 92 cents anticipated
- Revenue: $6.82 billion vs. $6.71 billion anticipated
AMD said its important info facility service elevated in gross sales for the 2nd quarter straight, but complete income assist for the 4th quarter remained in step with settlement assumptions.
AMD shares dropped 6% on Tuesday in extended buying and selling.
AMD said it anticipated round $7.5 billion in gross sales within the present quarter, in response to settlement assumptions of $1.16 in modified income per share on $7.54 billion in income. That would definitely be a 22% year-over-year lower for the December quarter.
The chipmaker reported take-home pay of $771 million, or 47 cents per share, in comparison with $299 million, or 18 cents per share, a yr earlier. Overall counsel outright discrepancy, or MAD, income was up 18% on a yearly foundation.
AMD shares are up round 20% till now in 2024, though opponents corresponding to Nvidia and Broadcom have truly had lots higher good points all through the exact same period, pushed by the elevating want for AI chips. AMD is the second-largest provider of data facility graphics refining units, or GPUs, that are made use of to coach and launch massive generative AI variations.
In October, AMD launched a brand-new skilled system chip known as the MI235X and said it anticipated the AI GPU market to be value $500 billion by 2028. The agency likewise said beforehand this yr that it anticipated round $4 billion in gross sales this yr in general AI chips, or round 15% of the agency’s complete income.
“Customer and partner interest for MI325X is high. Production shipments are planned to start this quarter,” said AMD CHIEF EXECUTIVE OFFICER Lisa Su on a phone name with consultants.
AMD’s AI chips are reported in its info facility sector, which higher than elevated on a yearly foundation to $3.5 billion in general gross sales. AMD said it was usually pushed by the strong gross sales of its Instinct- branded GPUs for AI. Overall info facility income was up 122% yr over yr.
AMD’s gross margin elevated to 54%, which the agency said was because of higher info facility income.
AMD likewise makes essential dealing with chips for laptop computer computer systems and internet servers. Computer gross sales are reported in AMD’s buyer sector, which expanded 23% all through the quarter to $1.9 billion. During the quarter, AMD’s chips have been consisted of in premium laptop computer computer systems marketed by Microsoft as “Copilot+” equipments that may run progressive AI consisted of with Windows.
AMD likewise makes chips for video gaming consoles and Computers. Its video gaming group dropped, with gross sales shifting 68% yr over yr, which the agency condemned on a discount in “semi-custom revenue,” that features custom-made chips for online game gaming consoles such because the Sony PlayStation 5.
The agency’s ingrained service, that features less-expensive chips for sector and numerous different functions, dropped 25% every year to $927 million in gross sales.
