On January 30, local time, AMD released its financial results for the fourth quarter of 2023 and the full year of 2023 as of December 30, 2023.
In the fourth quarter of 2023, AMD's revenue was $6.168 billion, up 10% year-on-year and 6% quarter-on-quarter, with gross margin of 47%, up 4 percentage points year-on-year and flat quarter-on-quarter, and net profit of $667 million, up 3,076% year-on-year and 123% quarter-on-quarter.
For the full year of 2023, AMD's revenue was $22.68 billion, down 4% year-on-year, gross margin was 46%, up 1 percentage point, and net profit was $854 million, down 35% year-on-year.
AMD has four divisions: Data Center (including Server CPUs, Data Center GPUs, Pensando and Xilinx Data Center Products), Client (including desktop and laptop processors and chipsets), Gaming (including discrete graphics processors and semi-custom console products), and Embedded (including AMD and Xilinx Embedded Products).
In the fourth quarter of 2023, AMD Data Center segment revenue of $2.282 billion (37%) increased 38% year-over-year and 43% sequentially, driven by strong growth in AMD Instinct GPUs and 4th Gen AMD EPYC CPU, and $1.461 billion (24%) in client segment revenue, up 62% year-over-year and 1% sequentially, primarily due to AMD Radeon 7000 series CPUs Volume Growth: Gaming Group revenue of $1,368 million, 22%, decreased 17% year-over-year and 9% sequentially, due to lower semi-custom revenue, partially offset by higher AMD Radeon™ GPU sales, and Embedded revenue of $1,057 million, 17%, decreased 24% year-over-year and 15% sequentially, primarily due to reduced inventory levels from customers.
For the full year 2023, AMD's Data Center segment revenue increased 7% year-over-year to $6.496 billion (29%), driven by strong growth in AMD Instinct GPUs and 4th Gen AMD EPYC CPU, $4.651 billion (21%), Client segment revenue of $4.651 billion (21%), down 25% year-over-year, primarily due to the PC market decline, and Gaming segment revenue of $6.212 billion (27%), down 9% year-over-year , primarily due to lower semi-custom sales, and embedded revenue of $5,321 million, or 23%, increased 17% year-over-year, primarily due to the inclusion of full-year revenue related to the acquisition of Xilinx, which closed in February 2022.
AMD's outlook is for revenue of approximately $5.4 billion in the first quarter of 2024 (plus or minus $300 million), with data center segment revenue flat, and the seasonal decline in server sales offset by strong data center GPU growth. Sales in the Client, Embedded, and Gaming segments are expected to decline sequentially, and semi-custom revenue is expected to decline significantly by double digits.
According to foreign media reports, AMD's fourth-quarter revenue exceeded analysts' expectations, but the first-quarter performance guidance fell short of market expectations (market analysts' median estimate was $5.77 billion), which was affected by the combined impact, AMD's stock price fell 6% after hours on Tuesday, but it should be pointed out that AMD's stock price has risen 80% since the previous earnings report.
It is worth mentioning that AMD also mentioned in its financial report that during the CES2024 of January this year, it released the AMD Ryzen 8000G series desktop processors, which is the industry's first desktop PC processor that includes a dedicated AI NPU, and also launched the Versal Edge XA (automotive-grade) adaptive SoC and AMD Ryzen embedded V2000A series processors, which are designed for automotive key areas such as infotainment, advanced driver safety, and autonomous driving.
According to the data, Tang Xiaolei, vice president of sales of AMD Greater China, said at a media event that in the automotive industry, AMD is focusing on three areas of infotainment, ADAS and autonomous driving at this stage.
As early as June 2021, AMD officially said that it had cooperated with Tesla, and the central control of Tesla's new Model S/X Plaid used a chip combination of AMD embedded APU+RDNA2 discrete graphics card, and it was later confirmed that Tesla's 2022 Model 3 and Model Y third-generation cockpit systems used AMD Ryzen V1000 series chips; In August 2022, AMD reached a strategic cooperation with ECARX, smart The smart cockpit of the 2024 BEV model will be powered by AMD Ryzen™ Embedded V2000 processors and AMD Radeon RX 6000 series GPUs.
On January CES2024 this year, AMD released the Versal Edge XA (automotive-grade) adaptive SoC and AMD Ryzen embedded V2000A series processors, both of which are 7nm process technology, the former for autonomous driving, the introduction of AI engine, and AMD's first automotive-certified 7nm device, which can provide 5 to 171 TOPS computing power, and the latter for intelligent cockpits, AMD The performance of the V2000 series CPUs is about twice that of the Qualcomm Snapdragon 8295 (394K DMIPS).
In addition to AMD is expected to compete with Qualcomm in the automotive field, it is expected to reduce Nvidia's market share in the field of AI chips. Well-known analyst Ming-Chi Kuo released a report in October 2023 saying that AMD's AI chip shipments are expected to grow rapidly in 2024-25, and AI chip shipments (mainly MI300A) in 2024 will be about 10% of Nvidia's and about 30% of Nvidia's in 2025.
Recently, Musk also said on Twitter when talking about the AI chip procurement plan that Tesla will spend more than $500 million on Nvidia's hardware this year, and gave a positive answer in the comments when replying to whether to purchase AMD chips, AMD said on this earnings call that the data center GPU business accelerated significantly in the fourth quarter, driven by the accelerated growth of MI300X from AI customers, the revenue exceeded the expectation of $400 million, and the data center GPU revenue is expected to increase quarter-on-quarter in the first quarter of 2024 It will exceed $3.5 billion in 2024.