AMD, a global technology company, announced strong financial results for the quarter ending in March 2019. In her keynote address at CES in Las Vegas, Nevada, CEO Lisa Su discussed the company’s EPYC processor and shared updates on its various segments.
For the quarter, AMD exceeded analyst expectations by posting earnings per share of 62 cents adjusted versus an anticipated 61 cents. Revenue was also higher than expected, coming in at $5.47 billion compared to $5.46 billion forecasted.
In the current quarter, AMD is forecasting sales of about $5.7 billion, which aligns with Wall Street estimates and represents approximately 6% annual growth. The company’s net income of $123 million or 7 cents per share is a significant improvement from the net loss of $139 million or 9 cents per share in the same period last year. Revenue was up approximately 2% year-over-year.
AMD’s Data Center segment had an impressive growth rate of 80%, driven by strong sales of its MI300 AI chip that competes with Nvidia’s AI graphics processors. The company has achieved over $1 billion in sales of this AI chip since its launch in the fourth quarter of 2023. Additionally, AMD’s central processors are often combined with advanced AI chips in servers, further fueling this growth potential.
The gaming segment saw a decline of 48% year-over-year due to reduced chip sales for game consoles and PCs supplied for Sony’s Playstation 5 and other platforms. However, AMD is focusing on leveraging its chips to support AI programs locally, potentially boosting laptop and desktop sales through “AI PCs.”
The client segment revenue from processors for chips and PCs showed substantial growth of 85% year-over-year to $1.4 billion in Q1 due to the end of last year’s PC slump. This highlights a shift towards more advanced computing solutions that can support AI programs locally without relying solely on cloud services.
Lastly, the embedded segment reported a decrease in sales of 46% year-over-year due to products acquired through Xilinx acquisition in late 2023.
Overall, these updates demonstrate AMD’s continued strength across various segments and its commitment to innovation and growth within the tech industry.
This is an evolving story and updates will follow as new developments arise from AMD’s business operations and market performance continue to unfold over time.
