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AMD releases third quarter 2023 financial results

by on01 November 2023

Both revenue and gross margin are up

AMD has reported its third quarter 2023 financial results, with steady growth all across the board, mostly driven by demand for Ryzen 7000 series CPUs and record server sales. The biggest winner was the Client segment of the company and AMD is not slowing down, expecting a sequential growth of 9 percent in Q4 2024.

In terms of numbers, AMD has reported a revenue of $5.8 billion, up by 4 percent compared to the same quarter last year and up by 8 percent compared to the previous quarter. The gross margin was at 47 percent, up by 5 points year-over-year, and up by 1 point compared to the previous quarter. Gross profit was at $2.74 million, with operating income of $224 million and net income of $299 million. Diluted earnings per share are at $0.18.

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"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."

As said, the biggest winner was the client segment, bringing in revenue of $1.5 billion, up by 42 percent year-over-year driven by Ryzen 7000 series CPU sales. The data center segment also did pretty well with $1.6 billion, which is flat year-over-year, reporting growth in 4th gen EPYC CPU sales. the gaming segment was down by 8 percent year-over-year, with revenue of $1.5 billion, mostly due to lower semi-custom sales, which was partially offset by increased AMD Radeon GPU sales. The embedded segment was also down 5 percent, with revenue of $1.2 billion.

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As said, AMD expects its Q4 2023 revenue to hit $6.1 billion (+/- $300 million), which should represent a growth of 9 percent year-over-year and 5 percent compared to Q3 2023. Gross margin is also expected to go up a bit.

You can check out the full report over at AMD.

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