AMD reported record third-quarter sales of $13.4 billion on Tuesday, up 45% from a year earlier, as its data center business nearly doubled while its gaming division contracted. The company forecast approximately $17 billion in fourth-quarter revenue, which would put its sales above Intel’s projected total for the first time if both companies meet their guidance.
Data center growth drives AMD’s outlook
AMD CFO Jean Hu said, “We expect revenue to be approximately $17 billion, plus or minus 3%. The midpoint of our guidance represents approximately 66% year-over-year revenue growth, primarily due to acceleration in our data center segment.”
AMD’s forecast represents an additional 27% in revenue compared with the third quarter. Intel’s fourth-quarter revenue guidance is between $15 billion and $16 billion. If both companies perform as expected, AMD’s quarterly sales will exceed Intel’s for the first time in history.
AMD’s data center division grew 97% year over year to a record $8.5 billion. The company attributed the increase to demand for its EPYC server processor line and the introduction of the Instinct MI450 Series GPU.
Operating margins in the data center business expanded from 25% to 34%, while operating income increased 168% to $2.88 billion.
Client and gaming results diverge
Sales of AMD Ryzen mobile chips helped lift revenue in the company’s client business, which also includes desktop Ryzen processors. Client revenue rose 7% year over year to $2.95 billion.
Gaming revenue, by contrast, fell 40% to $773 million. AMD attributed the decline to “lower semi-custom and graphics revenue.”
Embedded business expands
Embedded segment revenue rose 29% to $1.1 billion. The segment includes system-on-chip products, or SoCs, FPGAs, and AMD-owned boards built into other hardware. AMD attributed the growth to gains in the “aerospace and defense, automotive, communications, and industrial end markets.”
Source: arstechnica.com
