AMD Posts Strong Results on Robust EPYC Sales As Consumer CPU Sales Disappoint
AMD has announced its financial results for the fourth quarter and full year of 2022. Strong demand for AMD’s data center EPYC processors drove the company to record full-year revenue. Meanwhile, consumer CPU and GPU sales dropped significantly in Q4, clearly limiting the company’s growth in Q4.
Record year, not-so-record quarter
AMD’s Q4 2022 revenue totaled $5.6 billion, up 16% year-over-year and flat to Q4 2022. Meanwhile, the company’s net profit fell to $21 million, down 98% from the same period last year. Gross margin declined from 50% in Q4 2021 to 43%.
Full-year 2022 AMD revenue was $23.61 billion, up a whopping 44% from $16.434 billion in 2021. Stronger in Q3 and Q4.
Dr. Lisa Su, Chairman and CEO of AMD, said: “We have accelerated our data center momentum, completed our strategic acquisition of Xilinx, significantly diversified our business and strengthened our financial model. , we are confident of achieving long-term growth, building on our differentiated product portfolio.”
With the PC market softening, 2022 was a bit of a mixed year for AMD as product demand met expectations in the first half.
Data Center Hardware On The Rise, Consumer Hardware Sales Crater
Consumer CPUs and chipsets were AMD’s workhorse until five or six years ago, but no longer.In the fourth quarter, AMD’s revenue was client computing jobs $930 million, down 51% year-on-year. This business unit he lost $152 million, while he posted a profit of $530 million in the same period last year.
Perhaps the most disturbing detail about AMD’s consumer CPU business is that the average selling price of CPUs was flat year-over-year in the quarter the company announced its brand new Ryzen 7000 series processors. parts.
Speaking of AMD Game businessAnd it also came with a mixed bag. On the one hand, the unit earned him $1.6 billion in revenue (down 7% year-on-year) and he earned $266 million in profit (down from his $407 million in Q4 2021). bottom. On the other hand, however, this strong result was achieved largely because AMD was able to sell high volumes of system-on-chips for consoles, while sales of graphics processors for discrete desktop PC GPUs declined year-on-year. bottom.
AMD posted revenue of $1.7 billion, up 42% year over year. Data center business In Q4 2022, the company’s main sources of revenue surpassed its gaming and embedded businesses. Despite lower margins (27% in Q4 2022 vs. 32% in Q2 2022), the Group’s operating profit totaled $444 million, up from $369 million in the same period last year. Increased.
Regarding AMD embedded business — which sells mostly Xilinx-designed products and some AMD-designed chips — posted a profit of $1.4 billion, netting a profit of $699 million, another 1 in AMD’s financial report. It shows one bright dot.
Cautious first quarter outlook, bleak outlook for full 2023
AMD expects first quarter revenue to be approximately $5.3 billion (±$300 million). This is down about 10% year-over-year, mainly due to lower sales of consumer CPUs and gaming GPUs and SoCs. The company expects shipments of data center solutions such as EPYC CPUs, Pensando DPUs, FPGAs and embedded products to continue to increase.
Meanwhile, like some other tech companies, AMD did not provide a full-year outlook due to lack of a good outlook for the second half of 2023.
