Updated at 4:29 p.m. EST
modern micro devices (AMD) – Get a free report released better-than-expected fourth-quarter results on Tuesday, as a big gain in data center chip sales offset continued weakness in its gaming and personal computing businesses.
AMD said non-GAAP earnings for the quarter came in at 67 cents a share, down 27.2% from the same period last year, which was broadly in line with Street’s guidance. Consolidated revenue rose 30% to $5.6 billion, according to AMD, just above analyst forecasts of $5.5 billion. AMD itself had forecast revenue in the region of $5.5 billion plus or minus $300 million.
Gaming sector revenue fell 7% year over year to $1.6 billion, while data center revenue was up 42% to $1.7 billion. The client segment, which includes personal computing, saw revenue decline 51% to $903 million, while embedded segment revenue was fixed at $1.4 billion.
Looking ahead to the current fiscal year, AMD said it sees first-quarter revenue in the region of $5.3 billion, plus or minus $300 million, compared to Refinitiv’s guidance of $5.48 billion. Dollar. Year over year, AMD says gaming and client segment revenues will continue to decline, offset by data center and embedded growth.
“2022 was a strong year for AMD as we delivered best-in-class growth and record revenues in the second half despite the weak PC environment,” said CEO Dr. Lisa Su. “We have accelerated our data center momentum and completed our strategic acquisition of Xilinx, which significantly diversifies our business and strengthens our financial model.”
“While the demand environment is mixed, we are confident that we can gain market share in 2023 and deliver long-term growth based on our differentiated product portfolio,” she added.
AMD shares were up 3.7% in after-hours trading immediately after the earnings release, pointing to Wednesday’s opening price of $77.84 each.
Intel last week (INTC) – Get a free reportAMD’s main US rival, delivered weaker-than-expected fourth-quarter results and said continued weakness in PC demand would squeeze margins and hurt near-term profits in the coming months.
Intel said it sees revenue slowing further to $10.5 billion to $11.5 billion in the current quarter
Gross margins are now expected to narrow to around 34.1% for the three months ended March, nearly half of the chipmaker’s long-term target of around 60%.
With weak PC demand expected to continue well into the first half of the year and data center customers shedding spending plans amid general macroeconomic uncertainty, Intel expects a loss of 15 cents per share in the March quarter.
