Lisa Su, AMD’s president and CEO, discussed the company’s latest processor during a keynote address at the 2019 CES in Las Vegas, Nevada, U.S., on January 9th, 2019. The company’s financial performance in the quarter ending March surpassed analyst expectations.
Earnings per share came in at 62 cents adjusted versus the anticipated 61 cents, and revenue reached $5.47 billion instead of the expected $5.46 billion. AMD also reported an impressive net income of $123 million or 7 cents per share compared to a net loss of $139 million or 9 cents per share during the same period last year. Revenue was also up about 2% year-over-year.
AMD’s outlook for the current quarter includes an expected $5.7 billion in sales, which is in line with Wall Street estimates, representing a 6% annual growth rate. As for reported financials, revenue from the Data Center segment grew by an astonishing 80% year-over-year to $2.3 billion due to sales of its MI300 AI chip that competes with Nvidia’s AI graphics processors. The company noted that it had sold over $1 billion worth of these chips since their launch in fourth-quarter 2023. Additionally, the Client segment revenue increased by an impressive annual rate of 85%, marking its original business of processors for chips and PCs as one of AMD’s strongest segments.
The Gaming segment was AMD’s weakest division but showed promise with sales increasing by around a third year-over-year due to higher chip sales for game consoles and PCs despite declining by approximately half last year due to lower chip sales for game consoles and PCs. Furthermore, AMD announced that it had sold over $846 million worth of chips in its Embedded segment after acquiring Xilinx in October last year – this is despite a significant decline by about half from last year due to lower chip sales for game consoles and PCs as well as higher costs associated with Xilinx acquisition integration process.
AMD emphasized its focus on running artificial intelligence programs locally through its chips which positioned it well as potential drivers for new laptop and desktop sales going forward.
The company will be providing updates on MI300 sales and other segments during an upcoming earnings call with analysts.
This is a developing story and further updates will be provided as available.
