Alright, check it out folks! We got some big news coming in from AMD, the technology powerhouse! In the third quarter of 2023, they raked in a whopping $5.8 billion in revenue. That’s some serious cash, my friends! And get this, their gross margin stood at a solid 47%. Talk about making those dollars count!
But that’s not all, their operating income soared to $224 million, with a net income of $299 million. And guess what? The diluted earnings per share? A cool $0.18! Now, on a non-GAAP basis, their gross margin shot up to 51%! That’s impressive, my people! They also bagged a whopping $1.1 billion in net income and a diluted earnings per share of $0.70. Now, that’s what I call raking in the dough!
According to the all-powerful Dr. Lisa Su, the Chair and CEO of AMD, the revenue and earnings growth were driven by the crazy-high demand for their Ryzen 7000 series PC processors and their record-breaking server processor sales. And it doesn’t stop there, my friends. Their data center business is skyrocketing thanks to the strength of their EPYC CPU portfolio and the surge in Instinct MI300 accelerator shipments. They’re playing with the big boys now, partnering up with hyperscale, enterprise, and AI customers left and right!
But wait, there’s more! The CFO herself, Jean Hu, chimed in as well. She says that AMD executed flawlessly in the third quarter, delivering year-over-year growth in revenue, gross margin, and earnings per share. However, they do expect some lower sales in the Gaming segment and a softening demand in the embedded markets. It’s not all sunshine and rainbows, folks, but they’re still looking pretty damn good!
Let’s break it down a bit more, shall we? In the Data Center segment, they snagged $1.6 billion in revenue, driven by the sales of 4th Gen AMD EPYC CPUs. However, adaptive System-on-Chip (SoC) data center products took a little dip. But fear not, my friends, because their revenue jumped by a staggering 21% sequentially thanks to the adoption of those EPYC CPUs. And brace yourselves, they’re producing AMD Instinct MI300A and MI300X GPUs like there’s no tomorrow, ready to deploy them with all the big players in the HPC, cloud, and AI game. They ain’t messing around!
And let’s not forget about the Client segment! Revenue there reached $1.5 billion, with a massive 42% year-over-year growth. That’s all thanks to those Ryzen mobile processors flying off the shelves! And they didn’t stop there, folks. They had a 46% sequential growth driven by the insane demand for the AMD Ryzen 7000 Series CPUs. That’s what we call a success story, my people!
Now, onto the Gaming segment. Revenue may have dipped by 8% year-over-year, but don’t be too bummed out. It was mostly due to a decline in semi-custom revenue. But fear not, my fellow gamers, because AMD Radeon GPU sales saw a nice uptick! However, revenue did decline by 5% sequentially due to lower semi-custom sales. Keep your head up, though, the gaming industry is a wild ride!
Last but not least, the Embedded segment. They pulled in $1.2 billion in revenue, even though it dropped 5% year-over-year. You see, there was a bit of a decrease in the communications market. But hey, it’s not all bad news. They still brought in some serious cash! Although, revenue did decrease by 15% sequentially due to some inventory correction at customers across different markets. It’s a rocky road, my friends, but they’ll bounce back!
Alright, let’s move on to the badass PR highlights! The cloud game is strong for AMD. Big players like Microsoft Azure, AWS, and Oracle are jumping on board with nearly 100 new instances available for preview and general access. And check this out, AWS even has instances powered by the almighty 4th Gen AMD EPYC CPUs that deliver unbeatable performance and energy efficiency. Talk about taking the cloud by storm, folks!
Then we got the expansion of the 4th Gen EPYC CPU portfolio, with the remarkable AMD EPYC 8004 Series processors stealing the show. These bad boys are purpose-built to deliver mind-blowing energy efficiency and performance for cloud services, intelligent edge, and telco. They’re taking over, my people!
And let’s not forget about AI, the game-changer of the future. AMD went all-in on that front. They acquired open-source AI software expert Nod.ai, taking their AI software capabilities to another level. And they didn’t stop there, folks. They also snagged AI software leader Mipsology, expanding their AI software stack and fostering an open ecosystem of software tools, libraries, and models. They’re setting the stage for some serious AI dominance!
But wait, there’s more! AI startup Lamini revealed that they’re running production-ready Large Language Models (LLMs) exclusively on AMD Instinct accelerators. And get this, they’re doing it with just three lines of code! Now that’s what you call efficiency, my friends!
Let’s move on to the Ryzen processor lineup, where AMD truly shines. They’re bringing more performance and capabilities to the table for all you enthusiasts, gamers, and creators out there. Brace yourselves for the AMD Ryzen Threadripper PRO 7000 WX-Series and Ryzen Threadripper 7000 processors, pushing the boundaries of performance for those demanding desktop platforms. And if that wasn’t enough, they also launched the Ryzen 7045HX3D Series mobile processors, the world’s fastest mobile gaming processor equipped with AMD’s groundbreaking 3D V-Cache technology. Game on, my people!
And hold on tight because the AMD graphics processors and software features are blowing minds left and right. They introduced the badass AMD Radeon RX 7900M, the fastest Radeon GPU ever developed for laptops. This bad boy brings desktop-class performance right to your portable gaming station! But that’s not all, AMD also unleashed the Radeon RX 7800 XT and Radeon RX 7700 XT graphics cards, designed for those high-performance, high-refresh 1440p gaming experiences. It’s a game-changer, folks!
But wait, there’s more! AMD rolled out the FidelityFX Super Resolution 3, featuring new frame generation technology that takes gaming performance to a whole new level. And it doesn’t stop there, my friends. They also launched the latest version of the AMD Software: Adrenalin Edition application, packing some serious power with AMD HYPR-RX technology. Your gaming performance is about to go through the roof!
And let’s not forget about their commitment to corporate responsibility. AMD published its annual Corporate Responsibility Report, highlighting their progress in areas like digital impact, environmental sustainability, supply chain responsibility, and diversity, belonging