[Financial Results Summary] AMD expects 24-year sales of 2 billion dollars for semiconductors for AI

According to the 23Q3 (fiscal year ending 2023/7/9) financial results announced by AMD on the 1st (Japan time), sales were 5.8 billion dollars, up 4% from the same period last year. Amortization costs associated with the acquisition decreased, and net profit was 299 million dollars, about 4.5 times higher. The sales forecast for 23/10-12 was 5.8 billion to 6.4 billion dollars (5.599 billion dollars for the same period last year), which was lower than the market forecast of 6.40 billion dollars.

AI-related
AMD excels at central processing units (CPUs) used in personal computers, etc. Recently, image processing semiconductor (GPU) products used to run generative AI (artificial intelligence) in data centers will be expanded to compete with US NVIDIA. Expectations for growth are being gathered as an AI-related stock, but the contribution to full-scale business results is yet to come.

AMD is preparing a semiconductor called “MI300X,” and it will compete with NVIDIA with semiconductors used in data centers for generative AI. Chief Executive Officer Lisa Sue (CEO) stated at the financial results briefing that “multiple large customers” have pledged to use the MI300.

However, when it comes to AI semiconductors, the US Biden administration has strengthened regulations for China, and the US-China confrontation has become a cause of concern.

others
The company is benefiting from the recovery in the PC market. AMD is the second-largest manufacturer of chips mounted on add-in graphics cards that turn PCs into game consoles, and it also supplies chips to Sony and Microsoft game consoles. Demand for such products usually increases during the year-end sales season, and necessary parts are ordered at this time.

Sales of the company's client division reached $1.5 billion, up 42% from the same period last year, driven by sales of Ryzen 7000 processors. Chief Executive Officer Lisa Sue (CEO) stated in a conference call with analysts that AMD's PC chip sales improved both from the previous fiscal year and the same period last year due to the normalization of the PC market and the recovery of seasonal demand patterns.

Increased sales of computer chips are helping to offset the company's sluggish gaming and embedded segments. Meanwhile, while data centers anticipate strong growth, it seems uneasy that sales in the game business are expected to decline.