AMD’s Q1 2023 Revenue Beats Expectations But Guidance Falls Short

wccftech.com:

Chip designer Advanced Micro Devices, Inc reported its earnings report for the first quarter of 2023 earlier today. AMD brought in $5.4 billion in revenue for the first quarter, marking a slight 9% annual growth compared to rivals, with the figure sitting above the high end of analyst guidance. The firm's bottom line suffered a major beating, though, with GAAP earnings per share dropping by a stunning 116% but the non GAAP EPS down by a relatively less 47%. AMD's GAAP EPS consists of non core expenses such as acquisition costs, and analysts typically focus on the GAAP results.

The big ticket item from AMD's earnings report is the firm's Client computing segment. This division deals with the firm's personal computing products, and as was widely expected before today's report, the segment was in for a bloodbath. AMD's Client segment raked in $739 million in revenue during the quarter, marking a 65% drop by becoming the worst performing division for the company.

This led it to report a $172 million loss as the products' costs outstripped their net sales. At the same time, a slowing economy also hit AMD's data center segment. Datacenter has been one of the stronger performing business divisions of late, but it's appearing as if higher costs of capital and other factors are constraining corporate spending in the segment. AMD's data center revenue was $1.3 billion in the quarter, remaining flat annually. However, at the same time, an inflationary environment also drove down operating income from the segment, which stood at $148 million during the quarter as opposed to the $427 million in the year ago quarter.

Commenting on the results, AMD's chief financial officer Ms. Jean Hu shared that data center is now the firm's biggest