AMD was driving excessive final yr as shoppers purchased computer systems in droves and cryptocurrency miners snapped up each GPU they may get, however this yr, the corporate has come crashing right down to the bottom. Whereas it’s bringing in more cash than it was earlier than, thanks partly to higher gross sales within the information middle and gaming house, its third quarter earnings dropped by 93 % in comparison with final yr.
Based on its earnings report, AMD earned $66 million in earnings in Q3 on round $5.6 billion in income. That’s not a very spectacular determine by itself, nevertheless it will get worse if you evaluate it to its Q3 efficiency final yr, the place its earnings had been $923 million on $4.3 billion in income.
AMD says it missed its targets for the quarter due to “the softening PC market and substantial stock discount actions throughout the PC provide chain” and {that a} huge think about its decreased earnings is the accounting it’s doing after buying chip firm Xilinx in February for an estimated $50 billion.
The corporate did see development in a couple of areas. Whereas the marketplace for gaming GPUs isn’t as sizzling because it was again once they could possibly be used to mine Ethereum, AMD says its gaming phase was up by 14 %, or $1.6 billion, because of “increased semi-custom product gross sales.” That’s seemingly a reference to the chips powering consoles just like the PlayStation 5, Xbox Collection S and X, and Steam Deck. The corporate additionally noticed a forty five % leap yr over yr for its information middle division, the place it says its Epyc chips have been doing nicely, and its embedded enterprise obtained a large increase because of that Xilinx acquisition.
AMD is slated to announce a brand new era of these processors on November tenth and can also be slated to announce a brand new structure for its GPUs on the third. Based on AMD’s CEO Lisa Su, who spoke on the corporate’s earnings name, the corporate can also be betting on a number of folks shopping for consoles as we head into the vacation season.
