AMD reported record third-quarter revenue of $13.4 billion, up 45% from a year earlier. The company’s data center business nearly doubled, while revenue from gaming dropped sharply.
Data center revenue climbed 97% to a record $8.5 billion. AMD attributed the growth to demand for its EPYC server processors and the launch of its Instinct MI450 series GPUs. Operating income in the segment rose 168% to $2.88 billion, and its operating margin increased from 25% to 34%.
AMD’s gaming revenue fell 40% to $773 million. The company linked the decline to lower semi-custom and graphics revenue.
The Client segment, which includes desktop Ryzen processors, generated $2.95 billion, up 7% year over year. AMD said sales of Ryzen mobile chips led growth in the business. Revenue from its Embedded segment, which includes SoCs, FPGAs and boards, rose 29% to $1.1 billion, with gains across aerospace and defense, automotive, communications and industrial markets.
For the fourth quarter, AMD forecast revenue of about $17 billion, plus or minus 3%. CFO Jean Hu said the midpoint of that forecast would represent approximately 66% growth from a year earlier, driven mainly by the data center segment. The company’s projection is 27% above its third-quarter revenue.
Intel’s fourth-quarter revenue guidance, as reported by Tom’s Hardware, is between $15 billion and $16 billion. If both companies meet their forecasts, AMD would exceed Intel’s revenue for the first time, according to the report.
Sources: Ars Technica.