AMD revenues were $5.6 billion for the third quarter, below expectations, on a soft PC market and a “substantial” inventory correction in the PC supply chain, CEO Lisa Su reported Tuesday. An earlier projection had called for $6.7 billion in revenues before AMD issued a warning on Oct. 6.
Even with that reduction, AMD revenues came out 29% higher than a year ago, while profits were also up, by 13%, reaching $2.3 billion. Net income, however was down 93% to $66 million.
The 29% year-over-year growth in revenue came from sales in the data center, gaming and embedded segments, AMD reported. An operating loss of $64 million was due to the amortization of intangible assets with the Xilinx acquisition and increased R&D investments.
Client segment revenue dropped 40% year-over-year, reaching $1 billion.
Fourth quarter revenues are expected to reach $5.5 billion, an increase of 14% year over year. For all of 2022, revenues should reach $23.5 billion, an increased of 43% over 2021, with embedded and data center leading the way.
“We are confident that our leadership product portfolio, strong balance sheet, and ongoing growth opportunities in our data center and embedded businesses position us well to navigate the current market dynamics,” Su said in a statement.
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