News AMD 1Q23 Earnings

[jpiniero]

I'd certainly be interested in a good explanation for what happened to AMD's client segment. Q2 2022 was the last 'good' quarter at $2152M in revenue.

They were forced to cut ASP to flat YoY basically... and with TSMC's price hikes that was enough to turn it unprofitable.

 

[IEC]

Turns out all the macroeconomic trends actually do have an impact.

I'm sure all the recent layoffs are not going to help Q2 and Q3 numbers. Job openings are near a two year low in the USA due to all the recent layoffs and cost cutting.

A lot of people don't have the disposable income for a shiny new CPU or GPU right now.

 

[DooKey]

Just as I said in the Intel thread, recession camel is putting that nose further under the tent.

 

[mderbarimdiger]

i dont get it, what is the rationale for intel stock to spike ? or maybe its not related to AMD earnings ?

----
yeah, Xlinx was obviously a great deal, and - if my memory serves well - Xlinx was a all stock acquisition, so AMD bought that just by increasing the amount of AMD shares, what a great decision!

 

[A///]

the xilinx deal was good if you're familiar with what xilinx do and make. during the initial acquisition news while amd was engaged with xilinx the report stated a third party had approached xilinx to acquire them but were turned down. this wasn't intel and I can't imagine what company it might be but the obvious choice would be nvidia. combined with the then fresh mellanox acquiring it made sense. if intel were smart and i am sure they are they would use some of their altera ip in future processors to give them an edge.

the numbers aren't bad. they're in line with amd's predictions. every company is suffering at the moe. this news isn't bad as intel's but it could have been. the very good news is i got a clean bill of health by the pcp today and that's what matters most to me because I don't own tech stocks.

Turns out all the macroeconomic trends actually do have an impact.

I'm sure all the recent layoffs are not going to help Q2 and Q3 numbers. Job openings are near a two year low in the USA due to all the recent layoffs and cost cutting.

A lot of people don't have the disposable income for a shiny new CPU or GPU right now.

AMD had some lower level layoffs recently. They are shifting towards maximising their bottom dollars by going with higher educated more skilled people than entry or mid level.

 

[mderbarimdiger]

the numbers aren't bad. they're in line with amd's predictions. every company is suffering at the moe

hay, so compared to AMD, how was your doctor visit today 😉

 

[H433x0n]

the numbers aren't bad. they're in line with amd's predictions. every company is suffering at the moe. this news isn't bad as intel's but it could have been.

How’s that the case when they lost market share in client and at best didn’t cede market share in DC (they lost 22% QoQ in DC against 14% QoQ for Intel) and client is operating in the red?

Edit: the stock is down -6% after hours while Intel’s is up +3% so the market has a different opinion.

 

[A///]

How’s that the case when they lost market share in client and at best didn’t cede market share in DC (they lost 22% QoQ in DC against 14% QoQ for Intel) and client is operating in the red?

Edit: the stock is down -6% after hours while Intel’s is up +3% so the market has a different opinion.

because every company is suffering. intel suffered big time and their after hours was on the uptick. quarterly and after hour reports are disconnected with each other. apple in the past has reported tremendous performance only for their stock to drop in after hours. amd did as bad or worse last q and still bounced back while intel declined further. the market is disconnected from reality as the market is disconnected from the economy in manners one half of this country thinks it is. the stock market was on an adrenaline high for 2 years while inflation and food scarcity came into full force, housing went up, homelessness went up, the stock market is insulated within and only reflects the will and thrill of traders.

hay, so compared to AMD, how was your doctor visit today 😉

see my replyin full because you couldn't read all the way through.

 

[H433x0n]

because every company is suffering. intel suffered big time and their after hours was on the uptick. quarterly and after hour reports are disconnected with each other. apple in the past has reported tremendous performance only for their stock to drop in after hours.

see my replyin full because you couldn't read all the way through.

So is it fair to say AMD suffered big time with bigger losses in Client and DC segments? Just hard to gauge earning reports when numbers and market reactions don’t matter.

 

[A///]

So is it fair to say AMD suffered big time with bigger losses in Client and DC segments? Just hard to gauge earning reports when numbers and market reactions don’t matter.

amd suffering in client was expected, but i personally thought the damage would be worse because unlike their main competitor they can't supply enough processors to oems and the diy market like intel can. that is a fact and it will never change unless amd can overtake apple's orders and the next two behind them. if ifs should one day be amazing and amd take advantage they'd still be limited unless they were in a position where their product line up was fabbed on ifs and the critical stuff on tsmc. dc is to be expected, they said 2 quarters ago that they expect clients with contracts to scale back their orders but still maintaining those clients. when if the economy begins to recover we may see a large surge in purchasing. for contracts it doesn't matter when you buy them but as long as you buy them. there are kill fees in b2b contracts but if you kill the contract you go to the back of the line if you ever need a surge order you can't demand amd supply you with hardware after you chose to cancel it. the economy was poised for a recession that only lasted through 2023 according to experts but i don't think anyone knows when things will recover. the world came off a 14 year high ride. my recommendation to young folks here such as yourself is to buy whatever computer gear you need now compared to five or six months from now when it'll get expensive and will continue to get expensive.

 

[Markfw]

So is it fair to say AMD suffered big time with bigger losses in Client and DC segments? Just hard to gauge earning reports when numbers and market reactions don’t matter.

Well, Intel was DOWN 39% in data center, and AMD was flat. So AMD did a lot better in that segment. And that is what matters the most going forward. Thats where the bucks are.

 

[gdansk]

Overall it is worse than expected despite being in their estimate. I didn't think AMD would be so dependent on Xilinx.

 

[Abwx]

So is it fair to say AMD suffered big time with bigger losses in Client and DC segments? Just hard to gauge earning reports when numbers and market reactions don’t matter.

For DC the whole X86 market (AMD + Intel) was 7.4bn in Q1 2022, in Q1 2023 it s down by 32% to 5bn, so AMD managed to keep the same revenue in a plunging market, dunno how they could do much better in this segment.

 

[H433x0n]

amd suffering in client was expected, but i personally thought the damage would be worse because unlike their main competitor they can't supply enough processors to oems and the diy market like intel can. that is a fact and it will never change unless amd can overtake apple's orders and the next two behind them. if ifs should one day be amazing and amd take advantage they'd still be limited unless they were in a position where their product line up was fabbed on ifs and the critical stuff on tsmc. dc is to be expected, they said 2 quarters ago that they expect clients with contracts to scale back their orders but still maintaining those clients. when if the economy begins to recover we may see a large surge in purchasing. for contracts it doesn't matter when you buy them but as long as you buy them. there are kill fees in b2b contracts but if you kill the contract you go to the back of the line if you ever need a surge order you can't demand amd supply you with hardware after you chose to cancel it. the economy was poised for a recession that only lasted through 2023 according to experts but i don't think anyone knows when things will recover. the world came off a 14 year high ride. my recommendation to young folks here such as yourself is to buy whatever computer gear you need now compared to five or six months from now when it'll get expensive and will continue to get expensive.

I’m 34, I’m a software developer that contracts in the industry (I do penetration testing research) as well as embedded automotive.

I’m being short since this place has more AMD homers than Reddit. Like yesterday with the AMD vSOC thread (I've literally performed fault injection through voltage 'glitching' on Xeon CPUs and know the specifications). With respect to the earnings today, professional analysts have a completely different opinion. Heck, if Jim from AdoredTV has a more nuanced take on AMD's earnings that's really saying something.

 

[eek2121]

That's too bad. I thought AMD would gain some server market share, but I guess not.

You have to understand what is happening in big business right now. Everyone has stopped spending money and started layoffs. This tends to happen every time we are rumored to be going into a recession. The fact they did this well did not surprise me in the least.

I'd certainly be interested in a good explanation for what happened to AMD's client segment. Q2 2022 was the last 'good' quarter at $2152M in revenue. Since then it's dropped every quarter: $1022M in Q3, $903M in Q4, and now $739M. Is it a similar case to Intel where there's too much old inventory still in the channel that OEMs are working through and hence not buying as much new inventory?

AMD picked a bad time to switch platforms. They had a great thing with Zen 3 and Zen 3 X3D. Zen 4 is a decent chip, but the upgrade cost is pretty high. When I upgraded from Zen 2 to Zen 3, I simply had to pop in a new chip, and it gave me a considerable uplift. Zen 3 -> Zen 4 required a brand new platform with new RAM and other components. I went from a 1950x to a 3900x to a 5950x to a 7950x. The first 3 jumps were big. The last jump was much smaller. If AMD had dropped a 24 core part, it would have been a different story.

A lot of folks are likely holding off, and many may even go Intel thanks to a wider selection of parts.

AMD also isn't doing themselves any favors by not upping core counts and by being on such a slow release cadence. If you want to get into AM5/DDR5 at this point, your options are still pretty expensive compared to the cheapest Intel option.

Lastly, their GPU offerings have been 'meh'. They need to fix the RT weakness ASAP and also come up with a way to beat NVIDIA in perf/$. Matching NVIDIA pricing is NOT winning them any mindshare, which is likely going to hurt them in terms of marketshare.

 

[eek2121]

I’m 34, I’m a software developer that contracts in the industry (I do penetration testing research) as well as embedded automotive.

I’m being short since this place has more AMD homers than Reddit. Like yesterday with the AMD vSOC thread (I've literally performed fault injection through voltage 'glitching' on Xeon CPUs and know the specifications). With respect to the earnings today, professional analysts have a completely different opinion. Heck, if Jim from AdoredTV has a more nuanced take on AMD's earnings that's really saying something.

There is likely some AMD bias, but don't assume pro AMD statements are bias. Many, including me, are neutral. I give Intel a lot of crap currently because they are ignoring perf/watt and chasing power limits through the roof. When they finally do get their ducks in a row, I'll have something nice to say, and will likely build an Intel system again.

I am a senior software developer (I've been doing both software and hardware projects for more than 25 years, but currently mostly focus on software, though I do have an embedded project I am getting into that may require some custom hardware stuff) and I currently prefer AMD over Intel because from a performance standpoint, AMD has the edge (around 10-13% for 7950x vs 13900k) in a lot of my workloads, and from an efficiency standpoint, they outperform Intel by a large margin (7950x system pulls around 350-400w from the wall loaded, add another 70-120w for the Intel system for the same workload).

 

[gdansk]

What do you call a bunch of software engineers talking about finances of hardware companies?

Noise.

 

[Abwx]

The last jump was much smaller. If AMD had dropped a 24 core part, it would have been a different story.

AMD also isn't doing themselves any favors by not upping core counts and by being on such a slow release cadence. If you want to get into AM5/DDR5 at this point, your options are still pretty expensive compared to the cheapest Intel option.

More than high end they lack low cost offerings, i saw that in Germany the cheaper A620 MBs have slipped down to 90€, this would go well with 4C/6C APUs, even Zen 3 + RMB would be enough in the waiting of Zen 4 APUs, they are reacting too slowly to the market basic options, if reacting at all.

 

[A///]

I’m 34, I’m a software developer that contracts in the industry (I do penetration testing research) as well as embedded automotive.

I’m being short since this place has more AMD homers than Reddit. Like yesterday with the AMD vSOC thread (I've literally performed fault injection through voltage 'glitching' on Xeon CPUs and know the specifications). With respect to the earnings today, professional analysts have a completely different opinion. Heck, if Jim from AdoredTV has a more nuanced take on AMD's earnings that's really saying something.

mate I feel for your industry. I'm a lot safe than most but I've always kept soemthing on the back burner after getting burned by a few companies in various recessionary setbacks over my career. but i'd say you're very safe compared to the typical software person working for a wank company like google fiddling bs online. your work is useful isn't it? professional analysts get it right or wrong until they're on the opposite end of what they said may happen and if that jim is spudding out claptrap then it reckons back to the 30s or late 20s where shoe shiners were giving market advice and their own observations.

 

[itsmydamnation]

I’m 34, I’m a software developer that contracts in the industry (I do penetration testing research) as well as embedded automotive.

I’m being short since this place has more AMD homers than Reddit. Like yesterday with the AMD vSOC thread (I've literally performed fault injection through voltage 'glitching' on Xeon CPUs and know the specifications). With respect to the earnings today, professional analysts have a completely different opinion. Heck, if Jim from AdoredTV has a more nuanced take on AMD's earnings that's really saying something.

no offence your hot takes are terrible and use terrible logic.

im 37 with 15 years high end Network and datacentre design ( like proper big things ) , cuz somehow this counts for something.
Also my last major server purchase was intel ice lake.........

 

[A///]

More than high end they lack low cost offerings, i saw that in Germany the cheaper A620 MBs have slipped down to 90€, this would go well with 4C/6C APUs, even Zen 3 + RMB would be enough in the waiting of Zen 4 APUs, they are reacting too slowly to the market basic options, if reacting at all.

amd jumped the gun at the worst time possible and abandoned a market sector that intel took from them. i've sene more people discuss -400 systems than anything else from intel and those are great little processors and very affordable too. the 7600 and 7800 were jokes and the only good thing in that class from amd is the x3d 7800.

 

[A///]

no offence your hot takes are terrible and use terrible logic.

im 37 with 15 years high end Network and datacentre design ( like proper big things ) , cuz somehow this counts for something.
Also my last major server purchase was intel ice lake.........

alright alright this ain't a dick measuring contest. keep it civil gents.

 

[AdamK47]

I’m 34, I’m a software developer that contracts in the industry (I do penetration testing research) as well as embedded automotive.

I’m being short since this place has more AMD homers than Reddit. Like yesterday with the AMD vSOC thread (I've literally performed fault injection through voltage 'glitching' on Xeon CPUs and know the specifications). With respect to the earnings today, professional analysts have a completely different opinion. Heck, if Jim from AdoredTV has a more nuanced take on AMD's earnings that's really saying something.

You invalidated what you do by descripting it as "glitching" as if it was a console game. Back in my day, before you kids came along, we called it errata.

There will always be those on here hand-picking data from the earnings reports to score points for their particular team.

 

[Markfw]

no offence your hot takes are terrible and use terrible logic.

im 37 with 15 years high end Network and datacentre design ( like proper big things ) , cuz somehow this counts for something.
Also my last major server purchase was intel ice lake.........

Anything you have posted becomes garbage to me , when you say the last server purchase was Ice Lake, over a Genoa. I own one, so I know.

 

[eek2121]

mate I feel for your industry. I'm a lot safe than most but I've always kept soemthing on the back burner after getting burned by a few companies in various recessionary setbacks over my career. but i'd say you're very safe compared to the typical software person working for a wank company like google fiddling bs online. your work is useful isn't it? professional analysts get it right or wrong until they're on the opposite end of what they said may happen and if that jim is spudding out claptrap then it reckons back to the 30s or late 20s where shoe shiners were giving market advice and their own observations.

Meh, just have to save more. Layoffs are part of life. That is why you should keep a 6-12 month emergency fund, and also do what many of us do and own a side business (or be over employed).