AMD Announces 2023Q2 Financial Report

Today, AMD unveiled its financial results for the second quarter of 2023, and much like its competitor Intel, it exceeded market expectations in terms of revenue.

Dr. Lisa Su, AMD’s CEO, expressed her satisfaction with the performance in Q2 2023, fueled by sales growth of the Ryzen 7000 series and fourth-generation EPYC processors. The revenue from AMD’s artificial intelligence (AI) business in this quarter experienced a sevenfold surge, closely related to multiple clients initiating or expanding deployment of the Instinct series of products. This has allowed AMD to make significant strides in achieving key hardware and software milestones. To satisfy customer demand for its data center and AI solutions, AMD is accelerating its next-generation Instinct MI300 series project, preparing to launch associated products and initiate mass production.

In Q2 2023, AMD’s revenue stood at $5.359 billion, a decrease of 18% compared to $6.550 billion in the same period the previous year, while it remained essentially flat compared to the $5.353 billion from the previous quarter, exceeding the market’s expectation of $5.32 billion. Net profit was $27 million, down 94% from the $447 million in the same period last year, but represented a 119% quarter-on-quarter increase from a net loss of $139 million in the previous quarter. Gross margin was 46%, on par with the same period last year and up two percentage points from the previous quarter. Earnings per share were $0.02, down 93% compared to $0.27 from the same period last year, representing a 122% quarter-on-quarter growth compared to a per-share loss of $0.09 in the previous quarter.

Revenue for the data center division was $1.321 billion, down 11% year-on-year and up 2% quarter-on-quarter, with an operating profit of $147 million, significantly lower than the $472 million in the same period last year, and relatively unchanged compared to the previous quarter. The customer division reported revenue of $998 million, down 54% year-on-year but up 35% quarter-on-quarter, with an operating loss of $69 million, compared to an operating profit of $676 million in the same period last year, and a reduction from the previous quarter’s loss of $172 million. Revenue for the gaming division was $1.581 billion, down 4% year-on-year and 10% quarter-on-quarter, with an operating profit of $225 million, higher than the $187 million in the same period last year, but lower than the previous quarter’s $314 million. The embedded division reported revenue of $1.459 billion, up 16% year-on-year but down 7% quarter-on-quarter, with an operating profit of $757 million, higher than the $641 million from the same period last year, but slightly lower than the previous quarter’s $798 million.

AMD forecasts revenue of approximately $5.7 billion for Q3 2023, with a fluctuation of $300 million, indicating that AMD’s revenue will continue to improve in Q3 2023, ending two consecutive quarters of decline, although AMD’s estimate is slightly lower than the market expectation of $5.82 billion. Additionally, AMD anticipates a gross margin of around 51%, which aligns with the market’s expectation of 51.2%.