AMD CEO Lisa Su makes the opening speech at COMPUTEX discussion board in Taipei, Taiwan June 3, 2024.
Ann Wang | Reuters
Superior Micro Units reported third-quarter outcomes Tuesday, with earnings consistent with forecasts and income that barely beat expectations.
This is how the corporate did, in contrast with LSEG estimates for the quarter ending Sept. 28:
- Earnings per share: 92 cents adjusted vs. 92 cents anticipated
- Income: $6.82 billion vs. $6.71 billion anticipated
AMD stated its necessary knowledge middle enterprise doubled in gross sales for the second quarter in a row, however total income steerage for the fourth quarter was consistent with consensus expectations.
AMD shares fell 7% on Tuesday in prolonged buying and selling.
AMD stated it anticipated about $7.5 billion in gross sales within the present quarter, consistent with consensus expectations of $1.16 in adjusted earnings per share on $7.54 billion in income. That will be a 22% year-over-year decline for the December quarter.
The chipmaker reported internet earnings of $771 million, or 47 cents per share, in contrast with $299 million, or 18 cents per share, a 12 months in the past. General imply absolute deviation, or MAD, income was up 18% on an annual foundation.
AMD shares are up about 20% up to now in 2024, though rivals comparable to Nvidia and Broadcom have had a lot larger positive aspects throughout the identical interval, pushed by the rising demand for AI chips. AMD is the second-largest vendor of information middle graphics processing items, or GPUs, that are used to coach and deploy massive generative AI fashions.
In October, AMD introduced a brand new synthetic intelligence chip referred to as the MI235X and stated it anticipated the AI GPU market to be value $500 billion by 2028. The corporate stated on Tuesday that it anticipated $5 billion in AI chip gross sales this 12 months, up from a earlier forecast of $4.5 billion.
“Buyer and accomplice curiosity for MI325X is excessive. Manufacturing shipments are deliberate to begin this quarter,” stated AMD CEO Lisa Su on a name with analysts.
AMD’s AI chips are reported in its knowledge middle section, which greater than doubled on an annual foundation to $3.5 billion in whole gross sales. AMD stated it was primarily pushed by the sturdy gross sales of its Intuition-branded GPUs for AI. General knowledge middle income was up 122% 12 months over 12 months. Su stated that AMD nonetheless sees a number of demand from cloud suppliers and different corporations to construct out AI infrastructure.
AMD’s gross margin expanded to 54%, which the corporate stated was due to larger knowledge middle income.
AMD additionally makes central processing chips for laptops and servers. PC gross sales are reported in AMD’s shopper section, which grew 23% throughout the quarter to $1.9 billion. In the course of the quarter, AMD’s chips had been included in high-end laptops marketed by Microsoft as “Copilot+” machines that may run superior AI included with Home windows.
AMD additionally makes chips for gaming consoles and PCs. Its gaming class slumped, with gross sales sliding 68% 12 months over 12 months, which the corporate blamed on a lower in “semi-custom income,” which incorporates {custom} chips for recreation consoles such because the Sony PlayStation 5.
The corporate’s embedded enterprise, which incorporates less-expensive chips for trade and different functions, fell 25% yearly to $927 million in gross sales.
