AMD third quarter 2024 earnings report | Wilnesh News

AMD It announced third-quarter results on Tuesday, with profits in line with expectations and revenue slightly exceeding expectations.

Here’s how the company performed compared to LSEG’s forecast for the quarter ending September 28:

• Earnings per share: Adjusted 92 cents, expected 92 cents
• income: $6.82 billion, expected to be $6.71 billion

AMD said that sales of its important data center business doubled continuously in the second quarter, but its overall revenue guidance for the fourth quarter was in line with market consensus.

AMD shares fell 6% in after-hours trading on Tuesday.

AMD said it had sales of about $7.5 billion in the quarter, in line with consensus estimates of adjusted earnings of $1.16 per share and revenue of $7.54 billion. The December quarter was down 22% year over year.

The chipmaker reported net income of $771 million, or 47 cents a share, compared with $299 million, or 18 cents a share, a year ago. Overall mean absolute deviation (MAD) revenue increased 18% annually.

AMD shares have risen about 20% so far in 2024, although rivals such as Nvidia and Broadcom have gained much more over the same period, driven by growing demand for artificial intelligence chips. AMD is the second-largest supplier of data center graphics processing units (GPUs), which are used to train and deploy large generative artificial intelligence models.

In October, AMD released a new artificial intelligence chip called MI235X and said it expected the AI ​​GPU market value to reach US$500 billion by 2028. is US$4 billion, accounting for approximately 15% of the company’s total revenue.

According to reports, sales of AMD’s AI chips in its data center segment have more than doubled annually to $3.5 billion. AMD said this was driven primarily by strong sales of its Instinct-branded GPUs for artificial intelligence. The overall data center revenue increased by 122% year-on-year.

AMD’s gross margin expanded to 54%, which the company said was due to higher data center revenue.

AMD also makes central processing chips used in laptops and servers. According to reports, AMD’s customer segment PC sales grew 23% during the quarter to $1.9 billion. This quarter, AMD’s chips were installed in high-end laptops sold by Microsoft as “Copilot+” machines, which can run the advanced artificial intelligence included in Windows.

AMD also makes chips for game consoles and personal computers. Its gaming category fell, with sales down 68% year-over-year, which the company blamed on a decline in “semi-customized revenue,” which includes customized chips for consoles such as Sony’s PlayStation 5.

Sales at the company’s embedded business, which includes cheaper chips used in industrial and other applications, fell 25% annually to $927 million.