AMD lost 18% of revenue, but expects growth already in the 3rd quarter

AMD announced an 18% drop in revenue in II quarter of 2023. However, the obtained result equally exceeded the expectations of the industry, writes CNBC.

The company’s revenue amounted to $5.36 billion, although Refinitiv analysts predicted this indicator at the level of $5.31 billion. In the III quarter, AMD predicts an increase in revenue to $5.7 billion. At the same time, analysts estimate the indicator at the level of $5.81 billion.

The company’s net income was $27 million, or 2 cents per share, compared with $447 million, or 27 cents per share, a year earlier. AMD excludes from its earnings certain losses on investments and costs related to acquisitions.

AMD’s processor business has slowed in recent quarters, reflecting a deep downturn in the global PC market. AMD’s total revenue fell from $6.55 billion a year ago, marking the second straight quarter of decline.

But AMD is one of the few companies that makes the high-end graphics processing units (GPUs) needed for artificial intelligence, and analysts are watching to see if its server chips can take market share away from main competitor Intel. According to AMD, AI could also help PC chip sales.

“Going forward, we see AI as a significant PC demand driver as Microsoft
and other large software providers incorporate generative AI into their offerings”, said Lisa Su, the CEO of the company.

We are reminding that AMD in the I quarter of 2023 compared to the same period of 2022 lost 9% in revenue, to $5.35 billion. A year earlier, this index was reaching $5.89 billion.