Advanced Micro Devices (AMD) Q4 earnings reveal the semiconductor and computer processor manufacturer ended 2023 on a high note. The company’s Q4 revenue reached $6.2 billion, up 10% year-on-year, in-line with analyst estimates.
AMD’s data center and client segments are driving revenue growth for the company. The company is seeing sustained and record-breaking growth in its data centers based on ramp of AMD Instinct GPUs and strong demand for EPYC CPUs. While the client segment was flat compared to last year, holiday sales for the AMD Ryzen 7000 Series processors drove the quarterly boost.
In contrast, its gaming and embedded segments saw significant declines based on broader market trends. In gaming, higher Radeon GPU sales partially offset lower revenue from semi-custom revenue for console manufacturers. Likewise, the embedded segment is slowing due to inventory reduction activities from several end markets.
AMD FY2023 and forward outlook
AMD revenues totaled $22.7 billion in 2023, down 4% year-on-year. Data center and embedded segments drove revenue increases but could not overcome lower revenues from client and gaming.
Lil Snack & GamesBeat
GamesBeat is excited to partner with Lil Snack to have customized games just for our audience! We know as gamers ourselves, this is an exciting way to engage through play with the GamesBeat content you have already come to love. Start playing games now!
The company attributed its 7% data center growth to demand for its AMD Instinct GPUs and 4th Gen AMD EPYC CPUs. The embedded segment grew 17% thanks to its acquisition of Xilinx for $35 billion in stock. In contrast, the client and gaming segments contracted by 25% and 9% respectively due to lower PC and console demand.
Looking forward, AMD expects its Q1 revenue to reach $5.4 billion, plus or minus $300 million. The company expects data center revenue to remain flat with a seasonal decline in server sales offset by increased Instinct GPU revenue. However, the company expects client, embedded and gaming segment sales to decline.
“We now expect annual revenue to decline by a significant double digit percentage year-over-year as supply caught up with demand in 2023 and we enter the fifth year of what has been a very strong console cycle,” said CEO Lisa Su in the company’s prepared remarks.