News AMD 3Q22 Earnings

[Hitman928]

As AMD already pre-announced, 3Q was rough. They still had decent Y/Y growth but lower than expected at the beginning of the year and profitability was much lower this quarter. 4Q projections a little better. Will need time to dig into it more.



Edit:

The good:

• Gross margins still at 50% excluding Xilinx acquisition amortization.
• Data center and embedded continue to grow.
• Excluding Xilinx acquisition amortization, operating income and net income increased y/y.
• Gaming revenue continues to be strong thanks to strong console sales.
• AMD is projecting flat revenue for 4Q due to increased data center and embedded sales.
• AMD is still projecting 43% revenue growth for 2022 over 2021.

The bad:

• With Xilinx acquisition costs included, they had a negative operating income (accounted for over $1B loss).
• CPU and GPU sales were down. Doesn't seem like AMD expects them to recover by end of year.
• Consumer CPU (and probably GPU) had an operating loss on the quarter.
• A not insignificant portion of their full y/y growth will be from the Xilinx acquisition.
• Increased operating costs.

 

[itsmydamnation]

is there detail about what the ~ 1.2billion difference in operating income is between GAAP and non GAAP? is it all acquisition costs ?

 

[Hitman928]

is there detail about what the ~ 1.2billion difference in operating income is between GAAP and non GAAP? is it all acquisition costs ?

Pretty much. From the report:

All Other operating loss was $1.3 billion as compared to $104 million a year ago primarily due to amortization of intangible assets largely associated with the Xilinx acquisition.

 

[nicalandia]

Impressive performance.

 

[Abwx]

Revenue breakdown :

Quartalszahlen: AMDs Gewinn verpufft durch Ryzen und Xilinx

Nach der Umsatzwarnung vor einigen Wochen wurden am Abend mit Spannung AMDs Quartalszahlen erwartet.

www.computerbase.de

 

[Markfw]

Can someone better on accounting compare this to Intel Q3 ? Seems to me much better than Intel, even in consumer/gaming. Definitely in data center.

 

[DisEnchantment]

Man, the stars aligned for AMD when they bought Xilinx. In current economic landscape no way AMD can acquire Xilinx.
And now Xilinx is shoring up the revenues when everything else (beside DC) is taking a hit.

On a sidenote, during the call, it was stated that China revenues won't be back in 2023 (it started getting weaker in 2022). Not sure if this is DC only or also client, my guess is that longer term revenues will fade away in China.

 

[Hitman928]

Can someone better on accounting compare this to Intel Q3 ? Seems to me much better than Intel, even in consumer/gaming. Definitely in data center.

Speaking in broad strokes, Intel's consumer CPUs took much less of a hit than AMD's. For GPUs, obviously AMD is in a much better position, even if they took a large hit here too overall. Data center, Intel took a huge hit whereas AMD continues to grow. Overall, Intel revenues continue to shrink whereas AMD's continue to grow, just at a much slower pace than their recent history largely due to the soft PC market.

 

[Markfw]

Speaking in broad strokes, Intel's consumer CPUs took much less of a hit than AMD's. For GPUs, obviously AMD is in a much better position, even if they took a large hit here too overall. Data center, Intel took a huge hit whereas AMD continues to grow. Overall, Intel revenues continue to shrink whereas AMD's continue to grow, just at a much slower pace than their recent history largely due to the soft PC market.

I guess I am confused, as when you look at the top sellers in newegg, and the one in Europe (not sure the actual name), AMD is like many times more than Intel.

 

[Hitman928]

I guess I am confused, as when you look at the top sellers in newegg, and the one in Europe (not sure the actual name), AMD is like many times more than Intel.

DIY is a small portion of the consumer market. The vast majority of sales happen through OEMs (HP, Dell, etc.). Intel still has a ton of influence with OEMs where, to be honest, performance and perf/w don't matter as much and it's more about business relations and being a consistent and reliable supplier. AMD has made a lot of headway here, but Intel still has a large volume advantage as well as lots of "business relations" and "training" type of programs that keep these sales in Intel's corner.

 

[dullard]

I guess I am confused, as when you look at the top sellers in newegg, and the one in Europe (not sure the actual name), AMD is like many times more than Intel.

The confusion comes because those measurements (Newegg and Mindfactory) are terrible measurements if you want to compare overall CPU sales. As Hitman928 said, those are just tiny drops in the bucket for total CPU sales. I will give you that those websites are some of the few measurements we have (you could throw in Amazon top CPU sales to that list). But it is like wanting to know which person is taller and looking at the length of hair on the floor at a salon or size of fingernail clippings. It just doesn't tell you much of anything. Sure, one person might have much more hair at the salon (an adult likely will have more hair cut off than a baby), but making any overall height conclusion from that is just mindbogglingly inaccurate.

For example, I could make a website, promote the nostalgia of Via Technology CPUs, and sell a few of those. Are we then to conclude that VIA Technology outsells both AMD and Intel? Of course not, one website is so little information and can be very much influenced by the particular website's prices, target customers, etc.

AMD client sales Q3 2022: $1.02 billion
Intel client sales Q3 2022: $8.1 billion

AMD data center sales Q3 2022: $1.61 billion
Intel data center sales Q3 2022: $4.2 billion

Note: AMD and Intel have different stuff in those groups, but the numbers above give a rough comparison if that is what you wanted. I have no idea why it matters to anyone here though. If CPU sales matter, go to a different forum and talk about it (maybe in the stock market thread). This forum should be about CPU design and CPU performance in my opinion. I think too many people confuse (A) quantity of something sold with (B) the performance of that thing.

 

[gdansk]

Last I checked most PC sales are laptops. And AMD has a handful of mainstream 6000 series laptops and that is it.

 

[trivik12]

Their Q4 guidance is not great considering it includes Xilinx which was missing last year. So are they guiding to dropping overall revenue minus Xilinx?

 

[moinmoin]

On a sidenote, during the call, it was stated that China revenues won't be back in 2023 (it started getting weaker in 2022). Not sure if this is DC only or also client, my guess is that longer term revenues will fade away in China.

Recent technology sanctions mean the Chinese market is likely going to completely disappear.

 

[WelshBloke]

DIY is a small portion of the consumer market. The vast majority of sales happen through OEMs (HP, Dell, etc.). Intel still has a ton of influence with OEMs where, to be honest, performance and perf/w don't matter as much and it's more about business relations and being a consistent and reliable supplier. AMD has made a lot of headway here, but Intel still has a large volume advantage as well as lots of "business relations" and "training" type of programs that keep these sales in Intel's corner.

Yeah my son was in the market for a new laptop and th vast majority have Intel chips in. He got a Lenovo Touchpad with an AMD chip in in the end but there's not a lot of AMD options.

 

[Markfw]

Last I checked most PC sales are laptops you must remember. And AMD has a handful of mainstream 6000 series laptops and that is it.

I waited for 4 months on a 6800U, and it was backordered. I finally got 2 different ones, a 6800H and a 6850H. So due to the backorder I assumed they were selling all they could make.

 

[Hitman928]

Their Q4 guidance is not great considering it includes Xilinx which was missing last year. So are they guiding to dropping overall revenue minus Xilinx?

Yes, consumer side (CPUs and GPUs) are expected to decrease more than the increase in data center and console revenue.

 

[IntelUser2000]

So Intel must do a lot more pre-shipments than AMD since they sell at a much greater volume. They took the hit earlier in Q2 results and AMD is taking it now.

In Desktop, Intel gained 2% volume due to gaming and enthusiast they say. Competitive position does matter. Wonder how they'll compare in Q4 with Raptorlake/Zen 4 launch?

In servers not only they are not competitive, they don't even have a product they promised.

 

[DrMrLordX]

Last I checked most PC sales are laptops. And AMD has a handful of mainstream 6000 series laptops and that is it.

Those are the ones you see available at retail. What you don't see are the ones shipped by the thousand to corporate buyers.

Otherwise it looks like AMD's datacentre efforts continue to bear fruit. These results show AMD can still grow in an overall poor economic environment. That's a good look for them since we will see fewer instances of buyers waiting in line to snap up the latest server/workstation products from AMD. Genoa should be more-freely available than Milan was in its early phases. TSMC is seeing a drop-off in demand, giving AMD access to more wafers. Intel isn't fielding competitive products. AMD reaps the rewards.

 

[Markfw]

Those are the ones you see available at retail. What you don't see are the ones shipped by the thousand to corporate buyers.

Otherwise it looks like AMD's datacentre efforts continue to bear fruit. These results show AMD can still grow in an overall poor economic environment. That's a good look for them since we will see fewer instances of buyers waiting in line to snap up the latest server/workstation products from AMD. Genoa should be more-freely available than Milan was in its early phases. TSMC is seeing a drop-off in demand, giving AMD access to more wafers. Intel isn't fielding competitive products. AMD reaps the rewards.

And I was able to snag 2 Milan 7763's at a decent price !

 

[Harry_Wild]

From .75 to only .04 cents per share! No wonder this is off 60% and some analysts has a target price of $13 a share from $60 a share. High price was $164 a share!

 

[UsandThem]

From .75 to only .04 cents per share! No wonder this is off 60% and some analysts has a target price of $13 a share from $60 a share. High price was $164 a share!

Maybe if you hurry up and buy that Ryzen 7050X, it will help their stock price!

 

[TheELF]

Those are the ones you see available at retail. What you don't see are the ones shipped by the thousand to corporate buyers.

Otherwise it looks like AMD's datacentre efforts continue to bear fruit. These results show AMD can still grow in an overall poor economic environment. That's a good look for them since we will see fewer instances of buyers waiting in line to snap up the latest server/workstation products from AMD. Genoa should be more-freely available than Milan was in its early phases. TSMC is seeing a drop-off in demand, giving AMD access to more wafers. Intel isn't fielding competitive products. AMD reaps the rewards.

As does AMD, so it's unlikely that AMD will be able to get enough money together to increase their wafer orders, it's not like TSMC is giving them away.
Also why would they, when the whole market has a huge drop-off?
Are they doing server on different wafers than client?

 

[RnR_au]

Amazing funneling of resources into R&D by AMD!

https://twitter.com/x/status/1587548315478069248

 

[Harry_Wild]

Maybe if you hurry up and buy that Ryzen 7050X, it will help their stock price!

I think I will either hold my purchases until AMD goes back past $100 a share or go budget with 7600X or rumor 7700 65W CPU. We will see on Black Friday/CyberMonday days! Going full budget would cut my budget in half! B650 motherboard not X670E.