AMD released its Q3 financial results, showing growth in revenue, gross profit, and earnings per share. However, Wall Street responded negatively, causing AMD shares to initially drop by almost 5%.
Revenue increased by 4% to $5.8 billion, and gross profits rose by 17% to $2.75 billion. Also, the Data Center, Client, Gaming, and Embedded segments experienced mixed results. The Data Center segment had flat revenue due to a decline in SoC sales but hopes for future growth with next-gen MI300A and MI300X compute GPUs. The Client segment saw a significant 42% rise in revenue driven by increased sales of Ryzen 7000-series mobile processors. On the other hand, the Gaming segment faced an 8% year-on-year fall in revenue, attributed to declining semi-custom sales. The Embedded segment also fell by 5% year-on-year.
The PC market has faced challenges in 2022 and 2023 due to the pandemic, Chinese lockdowns, and soft demand following work-from-home upgrades. However, there was an uptick in CPU shipments for Q2, and the upcoming Black Friday and holiday buying season may provide better prospects. AMD is aiming to capitalize on the AI segment with its Instinct MI300X and MI300A accelerators, which feature a unique design combining Zen 4 CPU cores and CDNA 3 GPU cores.
