News AMD 1Q23 Earnings

[Hitman928]

Creating this thread in preparation of AMD announcing 1Q23 results.


While we wait, you can see Intel's results in the thread here which also includes some more semicon wide results/analysis.

In addition, there have been some more semicon and electronics companies which have reported results and forecasts. One of note is NXP which reported better than expected results in Q1 (flat y/y revenue and slightly down profit) and forecast a better than expected Q2. There is also a report now from BoA that says that global chip shipments suprised to the upside and grew 15% from Feb. to March.

Lastly, as a refresher, during their 4Q22 earnings, AMD gave a 1Q23 forecast revenue of $5 billion to $5.6 billion (-15% to -4.9% y/y) with the client group declining y/y but server and embedded growing y/y. They also projected a non-GAAP gross margin of 50%.

Edit:

Adding this quick summary graphic from AMD's investor page:

 

[Hitman928]

AMD's forecast was pretty much spot on. . .



Data center and embedded was more than 50% of revenue.

AMD expects Q1 to Q2 results to be flat and growth in the second half of the year.

 

[Hitman928]

AMD is reporting a earnings loss on a GAAP basis but they aren't actually losing money, the profitable non-GAAP is a more accurate view of how they are doing. The vast majority of the difference between the two is that they are still amortizing assets from their recent acquisitions but this isn't actually money that was spent this past quarter.

AMD had a positive free cash flow of $328M for the quarter. No increase in debt.

 

[controlflow]

"The biggest drop came in AMD’s client group, which includes sales from PC processors. AMD reported $739 million in sales in the category, a 65% decrease from $2.1 billion in sales during the same period last year."

Data center was essentially flat YoY

"AMD’s data center segment grew a tiny bit during the year, to $1.295 billion from $1.293 billion last year."

 

[Hitman928]

"The biggest drop came in AMD’s client group, which includes sales from PC processors. AMD reported $739 million in sales in the category, a 65% decrease from $2.1 billion in sales during the same period last year."

Data center was essentially flat YoY

"AMD’s data center segment grew a tiny bit during the year, to $1.295 billion from $1.293 billion last year."

Full breakdown:



That Xilinx acquisition looking really smart right now. . .

 

[Panino Manino]

Full breakdown:

View attachment 80285

That Xilinx acquisition looking really smart right now. . .

All those chips for the "Deck competitors" falls under Embedded?

 

[gdansk]

Is Xilinx under embedded?

 

[Hitman928]

I added a good graphic from AMD in the first post that summarizes everything and gives some explanation of the results for each segment.

 

[gdansk]

All those chips for the "Deck competitors" falls under Embedded?

Don't think so. Depending on the chip it is either client or gaming business units.

 

[Hitman928]

All those chips for the "Deck competitors" falls under Embedded?

Should be gaming (if using a semi-custom part or one of their new handheld focused APUs).

Is Xilinx under embedded?

Yes.

 

[controlflow]

All those chips for the "Deck competitors" falls under Embedded?

Pretty sure those are under Gaming. Could be wrong though.

 

[Markfw]

Compared to Intel ? Do I get it that its MUCH better, especially data center ? They were -39% and AMD is flat ?

 

[moinmoin]

Interesting that gaming is down a little. I hoped that PS5 now being no longer supply limited would increase the segment some more, but realistically it covered all the decreases (like dGPUs, Xbox etc.) there.

 

[Golgatha]

That's too bad. I thought AMD would gain some server market share, but I guess not.

 

[Khato]

Compared to Intel ? Do I get it that its MUCH better, especially data center ? They were -39% and AMD is flat ?

Certainly better, I wouldn't call it MUCH better though. While revenue is flat for AMD's data center segment, operating income on that revenue fell from $427M to $148M. And then there's that sore spot of AMD's client segment.

 

[H433x0n]

Comparing AMD's DC revenue -22% quarter of quarter:
Q4 22 - $1655
Q1 23 - $1295

That same period Intel went $4.3 billion to $3.7 which is a drop of -14%. I'm not sure if that really means much since top line revenue isn't the whole story.

Edit: The client segment cratered and was operating at a loss for Q1 (that was pre-7800X3D) and some newer mobile CPUs. I imagine Q2 should show improvement?

 

[trivik12]

This is the last quarter when Xilinx was still reported as separate entity. Q2 2022 AMD revenue was 6.6B. So they are calling for 20% drop in topline. Are they still guiding overall year to be up from 2022?

 

[Khato]

Edit: The client segment cratered and was operating at a loss for Q1 (that was pre-7800X3D) and some newer mobile CPUs. I imagine Q2 should show improvement?

I'd certainly be interested in a good explanation for what happened to AMD's client segment. Q2 2022 was the last 'good' quarter at $2152M in revenue. Since then it's dropped every quarter: $1022M in Q3, $903M in Q4, and now $739M. Is it a similar case to Intel where there's too much old inventory still in the channel that OEMs are working through and hence not buying as much new inventory?

 

[H433x0n]

I'd certainly be interested in a good explanation for what happened to AMD's client segment. Q2 2022 was the last 'good' quarter at $2152M in revenue. Since then it's dropped every quarter: $1022M in Q3, $903M in Q4, and now $739M. Is it a similar case to Intel where there's too much old inventory still in the channel that OEMs are working through and hence not buying as much new inventory?

As far as I know, AMD is still producing Zen 3 CPUs for client. I don't know how much of it they're still producing though. Honestly, I've got no clue what that says about their inventory.

 

[No_Huckleberry_1514]

Interesting that gaming is down a little. I hoped that PS5 now being no longer supply limited would increase the segment some more, but realistically it covered all the decreases (like dGPUs, Xbox etc.) there.

Contrary to what you believe.. its rough out there for middle class. Inflation hasn't subsided one bit.. groceries and everyday living expenses are sucking most people dry.
Everyone that had excessive disposable income has a PS5 by now.

 

[Vattila]

Here is my at-a-glance segment overview. Thank goodness for Embedded!

 

[AdamK47]

AMD currently down 6.3% in after hours. Ouch.

Intel up 2.5% after hours.

 

[Hitman928]

I'd certainly be interested in a good explanation for what happened to AMD's client segment. Q2 2022 was the last 'good' quarter at $2152M in revenue. Since then it's dropped every quarter: $1022M in Q3, $903M in Q4, and now $739M. Is it a similar case to Intel where there's too much old inventory still in the channel that OEMs are working through and hence not buying as much new inventory?

AMD said they shipped well under demand in the client segment due to excess inventory.

 

[Abwx]

Given current inflation rates, and as i pointed in another thread, i dont think that there was much room for 300$+ CPUs, thats a long time that AMD has not much offerings in the sub 200$ market and at some point cash restricted consumers tap in the cheapest things available, preferably APUs.

 

[AdamK47]

AMD currently down 6.3% in after hours. Ouch.

Intel up 2.5% after hours.

And the divide grows.