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Dec 30, 2023

AMD Q4 2023 Earnings Report

AMD reported strong Q4 2023 financial results with revenue and earnings growth driven by record AMD Instinct GPU and EPYC CPU sales.

Key Takeaways

AMD's Q4 2023 saw revenue of $6.2 billion, a gross margin of 47%, operating income of $342 million, and net income of $667 million, with diluted earnings per share at $0.41. The company's growth was propelled by record sales in AMD Instinct GPUs and EPYC CPUs, along with increased AMD Ryzen processor sales. AMD anticipates continued strong annual growth, driven by the increasing demand for its high-performance data center products.

AMD reported Q4 2023 revenue of $6.2 billion, up 10% year-over-year.

Data Center segment revenue increased by 38% year-over-year, driven by strong growth in AMD Instinct GPUs and 4th Gen AMD EPYC CPUs.

Client segment revenue increased by 62% year-over-year, driven primarily by an increase in AMD Ryzen 7000 Series CPU sales.

AMD expects Q1 2024 revenue to be approximately $5.4 billion, plus or minus $300 million.

Total Revenue
$6.17B
Previous year: $5.6B
+10.2%
EPS
$0.77
Previous year: $0.69
+11.6%
Gross Margin
47%
Gross Profit
$2.91B
Previous year: $2.4B
+21.1%
Cash and Equivalents
$3.93B
Previous year: $4.84B
-18.7%
Free Cash Flow
$242M
Previous year: $443M
-45.4%
Total Assets
$67.9B
Previous year: $67.6B
+0.5%

AMD

AMD

Forward Guidance

For the first quarter of 2024, AMD expects revenue to be approximately $5.4 billion, plus or minus $300 million. Non-GAAP gross margin is expected to be approximately 52%.

Positive Outlook

  • Data Center segment revenue to be flat, with a seasonal decline in server sales offset by a strong Data Center GPU ramp.
  • Non-GAAP gross margin is expected to be approximately 52%.

Challenges Ahead

  • Client segment sales are expected to decline sequentially.
  • Embedded segment sales are expected to decline sequentially.
  • Gaming segment sales are expected to decline sequentially.
  • Semi-custom revenue expected to decline by a significant double-digit percentage.