The PC market has been in a steep decline for the past few quarters, but AMD continues to outperform expectations. The firm said second-quarter revenues were down 18 percent year-on-year, but results were still better than analysts’ forecasts, with sales and profits exceeding forecasts.AMD shaken but not destroyed
In the second quarter of 2023, AMD fell to $5.4 billion from $6.6 billion in revenue the previous year. We can say that this decline was felt in all segments of AMD. AMD reported net revenue of $27 million in the second quarter, while expecting revenue of $5.7 billion in the third quarter. The previous year, this figure was $447 million and the decline was 94 percent.On the other hand, AMD seems to have not benefited much from the artificial intelligence deluge, or rather, not as much as its competitors. Because Intel and Nvidia provided an increase in the server sections where artificial intelligence chips are predominantly demanded, but this did not happen on the AMD side. While AMD’s data center segment fell 11 percent to $1.3 billion, the company said this was due to lower server processor sales.
AMD has announced a new chip that aims to build and run AI models at the heart of applications like ChatGPT. AMD said the MI300X chip is currently available to customers for sampling and production will increase in the fourth quarter. AMD’s embedded segment, where it sells less powerful chips and network components, was the only industry AMD grew during this period. Revenue of this unit rose 16 percent to $1.5 billion.Sales in AMD’s gaming segment fell 4 percent year-on-year to $1.6 billion; The decline would have been even worse had it not been for the high demand for “semi-custom” chips, such as those made for game consoles. In AMD’s segment, which includes sales from PC processors, the decline was 54 percent compared to the previous year and declined to $ 998 million. AMD stated that market conditions are improving.
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