AMD Revenues Fell 18 Percent in Q2

Microprocessor maker AMD reported that it earned a net income of $27 million on revenues of $5.36 billion in the quarter ending June 30. Those figures represent falls of 94 percent and 18 percent, respectively, year-over-year (YOY).

“We delivered strong results in the second quarter as 4th Gen EPYC and Ryzen 7000 processors ramped significantly,” AMD chair and CEO Dr. Lisa Su said. “Our AI engagements increased by more than seven times in the quarter as multiple customers initiated or expanded programs supporting future deployments of Instinct accelerators at scale. We made strong progress meeting key hardware and software milestones to address the growing customer pull for our data center AI solutions and are on track to launch and ramp production of MI300 accelerators in the fourth quarter.”

Gaming was AMD’s biggest business segment in the quarter with revenues of $1.6 billion, down 4 percent YOY due to “lower gaming graphics revenue.” Its Embedded business delivered $1.5 billion, a gain of 16 percent that was strong growth in the Industrial, Vision and Healthcare, Automotive and Test, and Emulation markets. Data Center revenues were $1.3 billion, down 11 percent YOY because of soft enterprise sales and elevated cloud inventory; AMD noted that there are now more than 670 publicly available AMD-powered cloud instances.

And then there’s the PC market. AMD’s Client segment brought up the rear with $998 million in revenues, a decline of 54 percent YOY. The firm experienced “reduced processor shipments” due to a “weaker PC market and a significant inventory correction across the PC supply chain.” But AMD says that over 100 AMD-powered commercial PCs will launch this year. And it expects revenues from its Data Center and Client segments to each grow by double-digit percentages, though that will be offset somewhat by declines in Gaming and Embedded.