AMD President and CEO Lisa Su talks about AMD EPYC processors during her keynote address at CES 2019 in Las Vegas, Nevada, USA on January 9, 2019.
Steve Marcus | Reuters
AMD report first quarter sales Tuesday’s data came in slightly above Wall Street expectations and provided a forecast for the current quarter.
AMD shares fell more than 3% in after-hours trading.
Here’s how it performed compared to LSEG’s consensus estimate for the quarter ending in March:
- Earnings per share: Adjusted to 62 cents. This was inconsistent with expectations of 61 cents.
- income: US$5.47 billion, compared with US$5.46 billion expected.
AMD said it had sales of about $5.7 billion in the quarter, in line with Wall Street expectations of about $5.7 billion. This represents an annual growth rate of approximately 6%.
The company reported net income of $123 million, or 7 cents per share, compared with a net loss of $139 million, or 9 cents per share, a year earlier. Revenue increased by approximately 2% compared with the same period last year. The company’s adjusted earnings missed analysts’ forecasts as AMD added a new inventory loss item.
AMD said its closely watched data center business grew 80% year over year to $2.3 billion, driven by sales of its MI300 AI chips that compete with Nvidia’s AI graphics processors. AMD said its AI chip sales have exceeded $1 billion since its launch in the fourth quarter of 2023.
AMD officials are likely to provide an update on MI300 sales during an earnings call with analysts.
AMD’s weakest segment is its gaming unit, which fell 48% year-over-year to $922 million, which the company said was due to lower sales of gaming consoles and PC chips. For example, AMD produces the chips for the Sony Playstation 5.
AMD’s original business (chips and PC processors) is reported as customer segment revenue. AMD reported first-quarter sales of $1.4 billion, an 85% year-on-year increase, indicating that last year’s PC downturn was over. AMD also emphasized that its chips can run artificial intelligence programs natively, which would enable it to power so-called “AI PCs” that many industry players are counting on to power new laptops and desktops. Computer sales.
The company’s embedded division, which consists of products acquired in the 2022 acquisition of Xilinx, saw sales decline, down 46% year-over-year to $846 million.
This story is developing. Please check back for updates.
About The Author
