Data centre business drives AMD Q3 revenue growth

“We delivered strong revenue and earnings growth driven by demand for our Ryzen 7000 series PC processors and record server processor sales,” said AMD Chair and CEO Dr. Lisa Su (pictured). “Our data centre business is on a significant growth trajectory based on the strength of our EPYC CPU portfolio and the ramp of Instinct MI300 accelerator shipments to support multiple deployments with hyperscale, enterprise and AI customers.”

“We executed well in the third quarter, delivering year-over-year growth in revenue, gross margin and earnings per share,” said AMD EVP, CFO and Treasurer Jean Hu. “In the fourth quarter, we expect to see strong growth in Data Centre and continued momentum in Client, partially offset by lower sales in the Gaming segment and additional softening of demand in the embedded markets.”

Data Centre segment revenue was $1.6 billion, flat year-over-year, as growth in 4^th Gen AMD EPYC CPU sales was offset by a decline in adaptive System-on-Chip (SoC) data centre products. Revenue increased 21% sequentially as customer adoption of 4^th Gen AMD EPYC CPUs accelerated during the quarter. AMD Instinct MI300A and MI300X GPUs are on track for volume production in the fourth quarter to support deployments with several leading HPC, cloud and AI customers.

Client segment revenue was $1.5 billion, up 42% year-over-year driven primarily by higher Ryzen mobile processor sales. Revenue grew 46% sequentially driven by an increase in AMD Ryzen 7000 Series CPU sales.

Gaming segment revenue was $1.5 billion, down 8% year-over-year, primarily due to a decline in semi-custom revenue, partially offset by an increase in AMD Radeon GPU sales. Revenue declined 5% sequentially due to lower semi-custom sales.

Embedded segment revenue was $1.2 billion, down 5% year-over-year primarily due to a decrease in revenue in the communications market. Revenue decreased 15% sequentially due to inventory correction at customers in several end markets.