AMD has announced its financial results for the second quarter of 2023. The company’s total sales topped global analysts’ estimates of $5.4 billion. The company saw an 18% drop compared to the same quarter last year. Net profit was down 19% year-on-year at USD 2.44 billion. Client segment sales were $998 million, down 54% year-over-year, due to reduced processor shipments as a result of the weaker PC market and a significant inventory correction across the PC supply chain. This development is not due to the company’s healthy economics, but to the fact that the company is restocking older chipsets and processors. Currently, the company is working to distribute new chipsets and processors to the market, such as the new AMD Ryzen Z1 and Z1 Extreme processors with graphics based on AMD RDNA 3 architecture, which bring perfect compatibility and battery life to handheld PC gaming consoles such as the Asus ROG Ally gaming console. The company’s sales of 4th generation Ryzen 7000 processors increased significantly by 35% in the second quarter. Sales of 4th generation AMD EPYC™ CPU chips nearly doubled. Embedded segment sales were $1.5 billion, up 16% year-over-year, driven primarily by strength in the industrial, healthcare and automotive markets. AMD also introduced new Ryzen™ PRO 7040 Series mobile processors, also the most advanced x86 processors for premium enterprise notebooks and mobile workstations running Windows 11. AMD also introduced new Ryzen PRO 7000 Series desktop processors, bringing the power of “Zen 4” integrated graphics and second-generation AMD RDNA to professional desktop users.
Advanced Micro Devices, Inc. (AMD:NASDAQ) also continues to deliver high-performance and accelerated computing for data centers, cloud and supercomputing. AWS , Alibaba, Microsoft Azure, and OCI announced new instances powered by processors just from Advanced Micro Devices, Inc. namely AMD EPYC 4th Generation that enable single-service transaction processing, real-time data analytics, and machine learning across cloud services. AMD EPYC processors and AMD Instinct accelerators continue to be the world’s most advanced, energy-efficient and powerful supercomputers, powering 121 supercomputers on the latest Top500 list. Cerebras also unveiled the Condor Galaxy 1 cloud AI supercomputer, which is powered by more than 70,000 processor cores just from Advanced Micro Devices, Inc. (AMD EPYC). These applications from the Condor Galaxy 1 AI include LLM training, healthcare and climate research.
AMD Executive Vice President, CFO and Treasurer Jean Hu said “Looking ahead to the third quarter, we expect double-digit revenue growth in our data center and client segments with demand for our EPYC and Ryzen processors partially offsetting declines in our gaming and embedded segments.”
AMD also plans to debut AL chips by the end of this year
CEO Lisa Su said AMD is poised to ramp up production of its flagship MI300 artificial intelligence chips in the fourth quarter. The accelerator chips, which are in short supply, are designed to compete with the advanced H100 chips that Nvidia already sells. Su also said customer interest in the MI300 series chips is “very high” and AMD will expand its work with “top cloud providers, i.e. large enterprises and a number of leading AI companies” during the third quarter.
Worldwide analysts have set an average target price of $141.90 per share for Advanced Micro Devices, Inc (AMD:NASDAQ) stock for the near- to mid-term investment horizon.