What about AMD?
Produced by Zhineng Zhixin
AMD's financial results for the third quarter of 2023 showed a positive trend in overall performance, with revenue reaching $5.8 billion, a year-on-year increase of 4.2%, slightly exceeding market expectations, mainly due to the recovery of the client business and data center business. Client business delivered a strong performance of more than 40% year-over-year and sequentially, underpinning profit growth in the quarter.
Gross profit in the third quarter was $2,747 million, an increase of 16.7% year-over-year, and AMD's gross margin for the quarter was 47.4%, an increase of 5.1 pct year-over-year, primarily due to a decrease in amortization of acquired intangible assets and improved profitability in business units such as Client.
Net profit in the third quarter was US$299 million, up 353.4% year-on-year, and net profit margin was 5.2%, which continued to improve sequentially.
In terms of business segments, AMD's performance varies.
1) Data center business
Data center revenue was $1,598 million, down 0.7% year-over-year, due to lower SoC product sales, and new products MI300A and MI300X GPUs are expected to drive data center business growth in the next quarter.
2) Client-side business
The client business achieved revenue of $1.453 billion, a year-on-year increase of 42.2%, and the strong demand mainly came from the Ryzen 7000 series desktop and laptop processors.
3) Gaming business
The revenue of the game business was US$1.506 billion, down 7.7% year-on-year.
4) Embedded business
Embedded revenue was $1.243 billion, down 4.6% year-on-year, mainly due to the decline in communications market demand and relatively weak business performance. The business was driven primarily by the acquisition of Xilinx, which is expanding its position in data center, networking, test and aerospace applications with the introduction of the first AMD SoC with HBM memory.
AMD's guidance for the fourth quarter is relatively conservative, with revenue expectations of $5.8 billion to $6.4 billion, slightly below market expectations. Gross margin is expected to be 51.5%, also below market expectations. This can be affected by market competition and fluctuations in demand. It is necessary to continue to monitor AMD's performance in new product introductions and market competition in order to more accurately assess its future growth prospects.