AMD Chairman and CEO Lisa Su speaks at the AMD keynote speech during the Consumer Electronics Show (CES) on January 4, 2023 in Las Vegas, Nevada.

Robyn Beck | AFP | Getty Images

AMD reported third-quarter earnings on Tuesday that beat analysts’ expectations, although the chipmaker gave weaker-than-expected guidance. The stock fell about 4% in extended trading.

Here’s how the company performed compared to LSEG (formerly Refinitiv) consensus estimates for the quarter ended September:

  • EPS: Adjusted 70 cents, versus expectations of 68 cents per share
  • revenue: $5.8 billion versus expectations of $5.7 billion

For the fourth quarter, AMD expects revenue of about $6.1 billion, while analysts expected revenue of $6.37 billion.

Net income rose to $299 million, or 18 cents per share, in the third quarter, compared with $66 million, or 4 cents per share, a year earlier. Sales rose 4% from $5.6 billion a year ago.

Revenue in AMD’s customer group, which includes sales of PC processors, rose 42% year over year to $1.5 billion, driven primarily by PC chips.

Last week, main rival Intel reported third-quarter earnings that beat profit and revenue expectations, but still showed an annual decline in sales.

The data center, which includes AMD’s server processors and AI chips, reported revenue of $1.6 billion, flat from a year ago. AMD said server CPU sales increased. AMD also said it expects strong growth in its data center business in the fourth quarter.

AMD is one of the few chipmakers capable of producing the kind of high-end graphics processing units (GPUs) needed to train and deploy generative AI models. This market is dominated by Nvidia. AMD said its upcoming AI chips, the MI300A and MI300X, are “on track” for mass production in the current quarter.

“Our data center business is on a significant growth trajectory based on the strength of our EPYC CPU portfolio and increasing shipments of Instinct MI300 accelerators,” AMD CEO Lisa Su said in a statement, highlighting the company’s AI business.

Sales in AMD’s embedded segment fell 5% to $1.2 billion, which the company blamed on a weak communications market. This includes parts for networking as well as the company’s FPGA unit, which it acquired when it bought Xilinx.

Sales in AMD’s gaming segment fell 8% to $1.5 billion as fewer “semi-custom” chips were sold. That’s what the company calls its business, which produces processors for consoles like Sony’s PlayStation 5.

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