Epyc and the Embedded segment helped AMD to a record 2022, despite the second-half slowdown

In short: The present world financial slowdown is inflicting many industries to wrestle, together with the PC market, which noticed shipments fall 28% throughout the vacation season. AMD felt this impact in its graphics and consumer PC segments throughout This fall final 12 months, nevertheless it believes issues will enhance after the present quarter. Total, although, 2022 was a record-breaker for Lisa Su’s firm.

AMD’s monetary outcomes for the fourth quarter and full 12 months present an all-time income excessive throughout the entire of 2022 because of sturdy performances in its Knowledge Middle (Epyc processors) and Embedded divisions. The corporate generated $23.601 billion final 12 months, a 44% enhance from the $16.434 billion it earned in 2021.

It wasn’t such a rosy image throughout This fall 2022, although. Income was up 16% to $5.6 billion, however internet revenue was down 98% from $974 million in This fall 2021 to $21 million, although AMD says most of that was because of the Xilinx acquisition. Income from consumer processors fell 51%, and gaming GPU income was down 7%. AMD made an working loss within the fourth quarter of $149 million.

“2022 was a robust 12 months for AMD as we delivered best-in-class development and file income regardless of the weak PC atmosphere within the second half of the 12 months,” mentioned AMD CEO Dr. Lisa Su. “We accelerated our knowledge heart momentum and closed our strategic acquisition of Xilinx, considerably diversifying our enterprise and strengthening our monetary mannequin. Though the demand atmosphere is blended, we’re assured in our capacity to realize market share in 2023 and ship long-term development based mostly on our differentiated product portfolio.”

Whereas AMD’s knowledge heart phase introduced in probably the most internet income throughout This fall, it was the Embedded division that basically stood out, particularly when it got here to working revenue; Embedded made up greater than half of AMD’s complete revenue throughout the fourth quarter. It appears the acquisition of Xlinx was a shrewd transfer on workforce purple’s half.

IDC says world shipments of conventional PCs slid to 67.2 million items within the fourth quarter of 2022, down 28.1% versus the identical interval in 2021, whereas Gartner says shipments hit their the largest stoop because the mid-Nineteen Nineties. AMD expects income of round $5.3 billion throughout the present quarter (ending March 31), down about 10% YoY, and it believes consumer and gaming income will proceed to drop subsequent quarter. Nonetheless, Su did seem assured that the panorama will enhance throughout the remainder of 12 months. “The primary quarter needs to be the underside for us in PCs,” mentioned AMD’s boss.