AMD’s 2023 Financial Results Unveiled: Q4 and Full Year Insights

AMD reports impressive revenue and earnings growth in the fourth quarter of 2023, driven by record sales of their high-performance products and a growing demand for their data center solutions, positioning the company for continued success in the future.

Impressive revenue growth and success in the fourth quarter of 2023
Strong performance driven by record sales of AMD Instinct GPUs, EPYC CPUs, and Ryzen processors
Growing demand for high-performance data center products and strong annual growth potential in the AI market

In an impressive display of growth and success, AMD has announced its revenue for the fourth quarter of 2023. The company reported a revenue of $6.2 billion, with a gross margin of 47% and operating income of $342 million. Net income reached $667 million, resulting in diluted earnings per share of $0.41. These numbers reflect a strong performance for AMD, driven by record sales of their AMD Instinct GPUs, EPYC CPUs, and Ryzen processors.

Dr. Lisa Su, Chair and CEO of AMD, expressed satisfaction with the company’s performance, stating, “We finished 2023 strong, with sequential and year-over-year revenue and earnings growth driven by record quarterly AMD Instinct GPU and EPYC CPU sales and higher AMD Ryzen processor sales.” Dr. Su also highlighted the growing demand for AMD’s high-performance data center products, which positions the company for strong annual growth as AI continues to reshape the computing market.

Jean Hu, EVP, CFO, and Treasurer of AMD, commended the company’s execution in 2023 despite a mixed demand environment. Hu stated, “We drove year-over-year revenue growth in our Data Center and Embedded segments and successfully launched our AMD Instinct MI300 GPUs, positioning us for a strong product ramp in 2024.”

Breaking down the segment summary, the Data Center segment saw significant growth in revenue, reaching $2.3 billion in the fourth quarter, a 38% increase year-over-year. This growth was driven by strong sales of AMD Instinct GPUs and 4th Gen AMD EPYC CPUs. For the full year 2023, Data Center segment revenue reached $6.5 billion, a 7% increase compared to the previous year.

The Client segment also experienced growth, with revenue reaching $1.5 billion in the fourth quarter, a 62% increase year-over-year. This growth was primarily attributed to increased sales of AMD Ryzen 7000 Series CPUs. However, for the full year 2023, Client segment revenue declined by 25% due to a decline in the PC market.

Gaming segment revenue reached $1.4 billion in the fourth quarter, a 17% decrease year-over-year. This decline was primarily driven by a decrease in semi-custom revenue. However, for the full year 2023, Gaming segment revenue reached $6.2 billion, a 9% decrease compared to the previous year, primarily due to lower semi-custom sales.

The Embedded segment saw a decline in revenue, reaching $1.1 billion in the fourth quarter, a 24% decrease year-over-year. This decline was primarily due to customers reducing their inventory levels. However, for the full year 2023, Embedded segment revenue reached $5.3 billion, a 17% increase compared to the previous year, primarily attributed to the inclusion of a full year of revenue from the acquisition of Xilinx.

In recent PR highlights, AMD showcased its growing momentum in advanced AI solutions across various sectors. The company announced the general availability of AMD Instinct MI300X accelerators and the AMD Instinct MI300A APU, both delivering breakthrough performance for HPC and AI workloads. AMD also made significant progress in expanding its AI software ecosystem and introduced new processors with integrated neural processing units (NPUs) for AI.

AMD also demonstrated its leadership in supercomputing, with Eni announcing a new supercomputer powered by AMD EPYC CPUs and Instinct GPUs. Additionally, AMD’s EPYC processors and Instinct accelerators power numerous supercomputers on the latest Top500 list and eight of the top 10 most energy-efficient supercomputers on the Green500 list.

Looking ahead, AMD expects its revenue for the first quarter of 2024 to be approximately $5.4 billion, with Data Center segment revenue expected to be flat. The company anticipates a decline in Client, Embedded, and Gaming segment sales, with a significant double-digit percentage decline in semi-custom revenue. Non-GAAP gross margin is expected to be approximately 52%.

Overall, AMD’s strong performance in 2023, driven by its high-performance products and growing presence in AI solutions, positions the company for continued growth and success in the coming years. With its focus on data center products and advancements in AI technology, AMD is well-positioned to thrive in an ever-evolving computing market.

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Background Information

About AMD: AMD, a large player in the semiconductor industry is known for its powerful processors and graphic solutions, AMD has consistently pushed the boundaries of performance, efficiency, and user experience. With a customer-centric approach, the company has cultivated a reputation for delivering high-performance solutions that cater to the needs of gamers, professionals, and general users. AMD's Ryzen series of processors have redefined the landscape of desktop and laptop computing, offering impressive multi-core performance and competitive pricing that has challenged the dominance of its competitors. Complementing its processor expertise, AMD's Radeon graphics cards have also earned accolades for their efficiency and exceptional graphical capabilities, making them a favored choice among gamers and content creators. The company's commitment to innovation and technology continues to shape the client computing landscape, providing users with powerful tools to fuel their digital endeavors.

Technology Explained

APU: An APU, or Accelerated Processing Unit, is a type of processor that combines a CPU and a GPU on a single chip. This type of processor is becoming increasingly popular in the computer industry due to its ability to provide both computing and graphics processing power in a single package. APUs are used in a variety of applications, from gaming PCs to high-end workstations. They are also used in embedded systems, such as those found in smartphones and tablets. The combination of CPU and GPU on a single chip allows for more efficient power consumption and better performance than traditional CPUs. Additionally, APUs are often used in conjunction with other components, such as RAM and storage, to create powerful and efficient systems.

CPU: The Central Processing Unit (CPU) is the brain of a computer, responsible for executing instructions and performing calculations. It is the most important component of a computer system, as it is responsible for controlling all other components. CPUs are used in a wide range of applications, from desktop computers to mobile devices, gaming consoles, and even supercomputers. CPUs are used to process data, execute instructions, and control the flow of information within a computer system. They are also used to control the input and output of data, as well as to store and retrieve data from memory. CPUs are essential for the functioning of any computer system, and their applications in the computer industry are vast.

EPYC: EPYC is a technology designed by computer chip manufacturer AMD for use in the server and data center industry. It was introduced in June 2017 and features an innovative design to improve performance and power efficiency. EPYC processor technology is based on an innovative 14nm processor architecture, allowing up to 32 high-performance cores in a single socket. This allows for more efficient processing power, increased memory bandwidth, and greater compute density. EPYC is now widely used in the data center and cloud computing industry and provides benefits such as greater scalability, increased resource efficiency, and advanced virtualization capabilities. Additionally, EPYC technology is used in data intensive servers like server farms, gaming, and virtualization platforms. EPYC ensures that even with large deployments in multi-processor environments, power consumption and performance levels are optimized to ensure maximum efficiency.

GPU: GPU stands for Graphics Processing Unit and is a specialized type of processor designed to handle graphics-intensive tasks. It is used in the computer industry to render images, videos, and 3D graphics. GPUs are used in gaming consoles, PCs, and mobile devices to provide a smooth and immersive gaming experience. They are also used in the medical field to create 3D models of organs and tissues, and in the automotive industry to create virtual prototypes of cars. GPUs are also used in the field of artificial intelligence to process large amounts of data and create complex models. GPUs are becoming increasingly important in the computer industry as they are able to process large amounts of data quickly and efficiently.