AMD posts strong revenue growth, projects robust sales of its AI chips

SAN FRANCISCO: Chip-maker AMD has posted $6.2 billion in revenue for the fourth quarter of 2023 and net income of $667 million, projecting robust sales for its AI processors.

For the full year 2023, the company reported revenue of $22.7 billion and the net income of $854 million.

“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,” said AMD Chair and CEO, Dr. Lisa Su.

Demand for high-performance data centre product portfolio continues to accelerate, “positioning us well to deliver strong annual growth in what is an incredibly exciting time as AI re-shapes virtually every part of the computing market,” Su added.

Data Center segment revenue in the quarter was $2.3 billion, up 38 per cent year-over-year.

For 2023, Data Center segment revenue was $6.5 billion, an increase of 7 per cent.

Gaming segment revenue was $1.4 billion for the quarter, down 17 per cent year-over-year, partially offset by an increase in AMD Radeon GPU sales.

For 2023, gaming segment revenue was $6.2 billion, down 9 per cent.

“AMD executed well in 2023 despite a mixed demand environment. 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,” said AMD EVP, CFO and Treasurer, Jean Hu.

For the first quarter of 2024, AMD expects revenue to be approximately $5.4 billion, plus or minus $300 million.

Sequentially, AMD expects Data Center segment revenue to be flat, with a seasonal decline in server sales offset by a strong Data Center GPU ramp.