AMD: data centers drive the rise in sales
· BehindLines newsroom
AMD reported on Tuesday, November 3, revenue of $13.38 billion for its third quarter, which ended on September 26, up 45% from a year earlier. The American chip maker posted net income of $2.43 billion under US GAAP accounting rules, or $1.46 per diluted share. Its adjusted earnings per share came to $2.09.
Sales exceeded the $13.09 billion expected by analysts, according to LSEG data reported by Reuters. Their estimate for adjusted earnings was $1.95 per share. Comparing these figures requires keeping the same accounting basis: adjusted measures exclude certain items from the calculation. AMD says they complement its GAAP results rather than replace them.
Data centers were the main driver of this growth. Their sales rose 97%, to about $8.5 billion. AMD highlights its EPYC server processors and its Instinct accelerators for artificial intelligence. The picture is less uniform for consumers: the PC and gaming segment fell 8%, to $3.7 billion. Within it, however, PC processor sales rose 7%, while gaming sales dropped 40%. The segment's decline therefore does not mean that both of its businesses are shrinking together.
For the fourth quarter, AMD expects revenue of about $17 billion, with a possible variation of 3% either way. Reuters puts the consensus at $16.23 billion. The company also targets an adjusted gross margin of about 55%, compared with 56% in the third quarter. These targets remain subject to changes in demand and supply.
The release thus underlines the growing weight of computing infrastructure in the company's business. To judge what comes next, it will be necessary to compare actual sales with the announced outlook and to distinguish accounting results from adjusted indicators.