AMD reported its financial results for the third quarter of 2023, with total revenue under GAAP accounting at $5.8 billion, marking a 4% increase compared to the same quarter in the previous year. The net profit for this quarter stood at $299 million.
The Data Center business group of AMD generated $1.598 billion in revenue, which remained similar to the previous year due to increased sales of the new EPYC models and a decrease in sales of System-on-Chip (SoC) products. The Client group witnessed a significant increase of 42% in revenue, reaching $1.453 billion, driven by higher sales of Ryzen processors. On the other hand, the Gaming group experienced an 8% decline in revenue, reaching $1.506 billion. The Embedded group saw a 5% decrease in revenue, amounting to $1.243 billion, attributed to reduced customer orders in the communication sector.
During the earnings call, AMD CEO Lisa Su provided additional insights, highlighting the potential growth opportunities presented by Generative AI. This technology is expected to further boost the Data Center group’s revenue in the fourth quarter, and the trend suggests that GPU sales could potentially reach $2 billion in 2024.
In summary, AMD’s financial performance in the third quarter of 2023 showcased an overall positive growth trajectory, with the Data Center and Client groups leading the way. Despite a slight decline in Gaming and Embedded revenue, the company remains optimistic about future opportunities, especially in the field of Generative AI.
TLDR: AMD’s Q3 2023 revenue reached $5.8 billion, up 4% compared to the previous year. The Data Center and Client groups performed well, while the Gaming and Embedded groups faced slight declines. CEO Lisa Su highlighted the potential of Generative AI to drive future growth, projecting GPU sales to reach $2 billion by 2024.