AMD Revenues Tumble 9 Percent on PC Market Downturn

Microprocessor maker AMD reported that it earned a net loss of $139 million on revenues of $5.4 billion in the quarter ending April 1. Net income plunged 118 percent in the quarter year-over-year (YOY), while revenues fell 9 percent.

“We executed very well in the first quarter as we delivered better than expected revenue and earnings in a mixed demand environment,” AMD Chair and CEO Dr. Lisa Su said. “We launched multiple leadership products and made significant progress accelerating our AI roadmap and customer engagements in the quarter. Longer-term, we see significant growth opportunities as we successfully deliver our roadmaps, execute our strategic data center and embedded priorities and accelerate adoption of our AI portfolio.”

AMD’s Client group, which serves the PC market, suffered the biggest shortfall in the company, with an operating loss of $172 million and revenues plunging 65 percent YOY to just $739 million. In the year-ago quarter, the Client group delivered $2.1 billion in revenues.

AMD’s Gaming group, which sells graphics products in the PC and gaming industries, stumbled a bit in the quarter with an operating profit of $314 million on revenues of $1.76 billion, down slightly from $1.86 billion one year ago. AMD’s Data Center group reported flat revenues of $1.29 billion.

In the good news department, Dr. Su said she sees a light at the end of the tunnel, with AMD expecting “growth in the second half of the year as the PC and server markets strengthen.”