In short: The present world financial slowdown is inflicting many industries to wrestle, together with the PC market, which noticed shipments fall 28% through the vacation season. AMD felt this impact in its graphics and consumer PC segments throughout This fall final yr, but it surely believes issues will enhance after the present quarter. Total, although, 2022 was a record-breaker for Lisa Su’s firm.
AMD’s monetary outcomes for the fourth quarter and full yr present an all-time income excessive throughout the entire of 2022 due to robust performances in its Information Heart (Epyc processors) and Embedded divisions. The corporate generated $23.601 billion final yr, a 44% improve from the $16.434 billion it earned in 2021.
It wasn’t such a rosy image throughout This fall 2022, although. Income was up 16% to $5.6 billion, however internet earnings was down 98% from $974 million in This fall 2021 to $21 million, although AMD says most of that was as a result of Xilinx acquisition. Income from consumer processors fell 51%, and gaming GPU income was down 7%. AMD made an working loss within the fourth quarter of $149 million.
“2022 was a robust yr for AMD as we delivered best-in-class progress and report income regardless of the weak PC setting within the second half of the yr,” stated AMD CEO Dr. Lisa Su. “We accelerated our information heart momentum and closed our strategic acquisition of Xilinx, considerably diversifying our enterprise and strengthening our monetary mannequin. Though the demand setting is combined, we’re assured in our means to realize market share in 2023 and ship long-term progress based mostly on our differentiated product portfolio.”
Whereas AMD’s information heart phase introduced in essentially the most internet income throughout This fall, it was the Embedded division that actually stood out, particularly when it got here to working earnings; Embedded made up greater than half of AMD’s whole revenue through the fourth quarter. It appears the acquisition of Xlinx was a shrewd transfer on staff pink’s half.
IDC says world shipments of conventional PCs slid to 67.2 million items within the fourth quarter of 2022, down 28.1% versus the identical interval in 2021, whereas Gartner says shipments hit their the most important stoop because the mid-Nineteen Nineties. AMD expects income of round $5.3 billion through the present quarter (ending March 31), down about 10% YoY, and it believes consumer and gaming income will proceed to drop subsequent quarter. Nevertheless, Su did seem assured that the panorama will enhance throughout the remainder of yr. “The primary quarter needs to be the underside for us in PCs,” stated AMD’s boss.