AMD Issues Preliminary Third Quarter 2022 Financial Results

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In the second quarter of 2022, AMD’s revenue was $6.55 billion, an increase of 70% year-on-year and an increase of 11.3% sequentially. This is the first time that AMD’s quarterly revenue has exceeded the $6 billion mark, and it has set a new record for single-quarter revenue for eight consecutive quarters. Compared with the sharp decline in the performance of Intel and Nvidia, it is rare for AMD to maintain a growth trend although its growth rate has begun to slow down.

The recent global macroeconomic situation is severe, and the PC market and supply chain have already changed from a supply shortage to an oversupply, and AMD has obviously been affected. AMD recently released preliminary financial results for the third quarter of 2022, with expected revenue of approximately $5.6 billion, a year-on-year increase of 29%. Compared with the $6.7 billion reported in the second quarter of 2022, and the expectation of a 55% year-on-year increase, revenue was significantly reduced by $1.1 billion. This reflects that the softening of the PC market may be much more severe than previously estimated, coupled with the need for destocking operations in the supply chain, resulting in fewer processor shipments.

Among them, the performance of the customer division is the most affected, with revenue expected to decline by 40% year-on-year and 53% month-on-month. AMD expects gross margins to be around 50%, down from its previous forecast of 54%, due to lower client processor unit shipments and average selling prices. AMD spent about $160 million on “inventory, pricing, and related reserves in the graphics and client business.”

AMD will release its third-quarter 2022 earnings on November 1 and will share more information on the earnings call.

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