Lisa Su, president and CEO of AMD, talks concerning the AMD EPYC processor throughout a keynote tackle on the 2019 CES in Las Vegas, Nevada, U.S., January 9, 2019.
Steve Marcus | Reuters
AMD reported first-quarter gross sales on Tuesday that have been barely forward of Wall Avenue expectations, and supplied an in-line forecast for the present quarter.
AMD shares dropped 3% in prolonged buying and selling.
Here is the way it did versus LSEG consensus expectations for the quarter ending in March:
- Earnings per share: 62 cents adjusted. That does not evaluate to expectations of 61 cents.
- Income: $5.47 billion vs. $5.46 billion anticipated.
AMD stated it expects about $5.7 billion in gross sales within the present quarter, according to Wall Avenue estimates of the identical approximate whole. That might signify about 6% annual progress.
The corporate reported internet revenue of $123 million, or 7 cents per share, versus a internet lack of $139 million, or 9 cents per share, throughout the year-earlier interval. Income was up about 2% from a yr earlier. The corporate’s adjusted earnings did not evaluate to analyst forecasts as a result of AMD had added a brand new merchandise for stock loss.
AMD stated its closely-watched Information Middle phase grew 80% on a year-over-year foundation to $2.3 billion due to gross sales of its MI300 AI chip, which competes with Nvidia’s AI graphics processors. AMD stated it had bought over $1 billion of the AI chips because it launched within the fourth quarter of 2023. AMD additionally makes central processors which are sometimes paired with superior AI chips in servers.
AMD officers will seemingly present an replace about MI300 gross sales throughout an earnings name with analysts.
AMD’s weakest division was its gaming phase, which was down 48% on an annual foundation to $922 million, which the corporate stated was resulting from decrease chip gross sales for sport consoles and PCs. AMD makes chips for Sony’s Ps 5, for instance.
AMD’s unique enterprise, processors for chips and PCs, is reported as consumer phase income. AMD reported $1.4 billion in first-quarter gross sales, a 85% annual improve, suggesting that final yr’s PC stoop is over. AMD can also be highlighting its chips with the ability to run synthetic intelligence applications domestically, which might enable it to energy so-called “AI PCs” that many trade individuals are banking on to drive new laptop computer and desktop gross sales.
The corporate’s embedded phase, made up of merchandise acquired as a part of the Xilinx acquisition in 2022, reported falling gross sales, dropping 46% on an annual foundation to $846 million.
This story is growing. Please test again for updates.
