AMD reported on Nov. 3 that third-quarter revenue rose 45% to $13.38 billion, as data center sales nearly doubled and operating income increased faster than sales. The chipmaker also forecast a further revenue increase in the fourth quarter.
Data centers lead, while gaming declines
In its results for the quarter ended Sept. 26, AMD reported data center revenue of $8.5 billion, up 97% from a year earlier. The company attributed the increase to demand for EPYC processors and the launch of Instinct MI450 graphics processors.
The gains were not uniform. Client and Gaming revenue fell 8% to $3.7 billion. Within that segment, client revenue rose 7%, while gaming revenue dropped 40%. Embedded revenue increased 29% to $1.1 billion.
GAAP operating income reached $2.83 billion, up 123%, and net income was $2.43 billion. Gross margin was 54%; the company’s separately calculated non-GAAP gross margin was 56%.
A forecast, not booked revenue
AMD expects fourth-quarter revenue of about $17 billion, plus or minus 3%, with a non-GAAP gross margin of about 55%. Those figures are management’s expectations, not completed-quarter results.
For historical context, AMD’s Aug. 4 earnings release reported second-quarter revenue of $11.54 billion and operating income of $1.99 billion. That earlier quarter’s data center revenue was $6.7 billion, up 107% from a year before.
The new figures advance the questions in NextNow’s earnings preview: data center growth, the mix across businesses and the distinction between GAAP and adjusted margins.