On January 30, local time, AMD, a major processor manufacturer, announced its financial results for the fourth quarter of 2023 and the full year of 202349%。
AMD reported revenue of $6.2 billion in the fourth quarter of 2023, up from $5.6 billion in the year-ago quarter, with gross margin of 47% and operating income of 3$4.2 billion, with a net profit of 6$6.7 billion, or 0$41. On a non-GAAP basis, gross margin was 51%, operating income was $1.4 billion, net income was $1.2 billion and diluted earnings per share were 0.2 billion$77, up from $0 in the same period last year$69.
According to a FactSet survey, the average analyst** AMD reported fourth-quarter 2023 revenue of $6.1 billion and non-GAAP earnings per diluted share of 0.1 billion$77. Clearly, AMD's results were in line with analysts' expectations.
For the full year 2023, AMD posted revenue of $22.7 billion, gross margin of 46% and operating income of 4.0.1 billion US dollars, net profit of 8$5.4 billion, or 0$53. On a non-GAAP basis, gross margin was 50%, operating income was $4.9 billion, net income was $4.3 billion and diluted earnings per share were 2$65.
In terms of business segment performance, AMD Data Center segment revenue was $2.3 billion in the fourth quarter of 2023, up 38% year-over-year and 43% sequentially, driven by strong growth in AMD Instinct GPUs and AMD EPYC CPUs. For the full year 2023, Data Center segment revenue was $6.5 billion, up 7% from the previous year, driven by strong growth in AMD Instinct GPUs and AMD EPYC CPUs.
Client Group revenue for the fourth quarter of 2023 was $1.5 billion, up 62% year-over-year, primarily driven by higher sales of AMD Ryzen™ 7000 Series CPUs. For the full year of 2023, client segment revenue was $4.7 billion, down 25% from the previous year, due to a decline in the PC market.
Gaming segment revenue for the fourth quarter of 2023 was $1.4 billion (above consensus of $1.2 billion), down 17% year-over-year and 9% sequentially, due to lower semi-custom revenue, partially offset by higher AMD Radeon GPU sales. For the full year 2023, Games segment revenue was $6.2 billion, down 9% from the prior year, primarily due to lower semi-custom sales.
Embedded Group revenue for the fourth quarter of 2023 was $1.1 billion, down 24% year-over-year and 15% sequentially, primarily due to reduced inventory levels from customers. For the full year 2023, Embedded Group revenue was $5.3 billion, an increase of 17% from the prior year, primarily due to the inclusion of full-year revenue related to the acquisition of Xilinx, which closed in February 2022.
"We delivered strong results in 2023, with revenue and profit increasing sequentially and year-over-year on the back of record quarterly AMD Instinct GPU and EPYC CPU sales, as well as higher AMD Ryzen processor sales," said Dr. Lisa Su, Chairman and Chief Executive Officer of AMD. "Demand for our high-performance data center portfolio continues to accelerate, which enables us to deliver strong annual growth at an incredibly exciting time when AI is reshaping nearly every segment of the computing market. ”
Jean Hu, executive vice president, chief financial officer and treasurer at AMD, said, "AMD performed well in 2023 despite the complex demand environment. "We drove year-over-year revenue growth in the data center and embedded space and successfully launched the AMD Instinct MI300 GPU, setting us up for strong product growth in 2024. ”
Looking ahead to the first quarter of 2024, AMD** median revenue will be $5.4 billion plus or minus $300 million, below the $5.7 billion estimate of analysts surveyed by FactSet.
AMD said that first-quarter revenue will be flat compared to the previous quarter, and server revenue will show a quarterly decline, but this will be offset by the growth of GPUs required for data centers. Client, Embedded and Gaming revenue is likely to be lower than in the prior quarter, and semi-custom revenue is likely to decline by as much as a significant double-digit percentage. AMD's semi-custom processors are mainly Microsoft Xbox and Sony PlayStation consoles.
Perhaps due to the impact of the weaker-than-expected first-quarter guidance, AMD's stock price was at **3 on the 30thAfter 24%, the stock price fell another 649%。
It is worth mentioning that AMD CEO Lisa Su said at the **meeting** on January 30** that AMD's AI chip revenue will reach $3.5 billion in 2024, higher than the previous ** $2 billion. In addition, the AI chip revenue in the fourth quarter of last year also exceeded the previous ** $400 million, but she did not disclose the exact figure.
Editor: Xinzhixun-Rogue Sword.