Question AMD 2Q23 Earnings

[Hitman928]

AMD reported revenue in line with their forecast from Q1 (slight beat).

AMD Reports Second Quarter 2023 Financial Results

SANTA CLARA, Calif., Aug. 01, 2023 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced revenue for the second quarter of 2023 of $5.4 billion,…...

ir.amd.com

More to follow.

 

[Hitman928]

For the third quarter of 2023, AMD expects revenue to be approximately $5.7 billion, plus or minus $300 million, and expects non-GAAP gross margin to be approximately 51%.

If they hit their forecast, the 3Q will be up 2.4% Y/Y which is not much but 3Q22 was already their highest 3Q revenue on record. GM should be roughly flat Y/Y. Was still hoping for a bit better 3Q but as Intel's results indicated, recovery seems to be coming later / taking longer than originally expected.

 

[Hitman928]

Client side down big still but recovered significantly from Q1. Seems that AMD was willing to sacrifice market share on the client side to Intel in order to maintain margins. GPUs also hurting AMD in the gaming sector. Semi-custom (consoles and handhelds) grew 4% Y/Y.

Data center down Y/Y but slightly up Q/Q.

AMD projecting double digit growth in data center and client in 3Q. Talked about 7x increase in customer engagements for AMD's AI solutions. Now it's up to them to turn that into sales. Probably won't see the real fruit of that start to show until 2024 though.

Embedded segment continues to be very strong (mostly Xilinx).

AMD projecting gross margins to increase in 2H. It seems AMD is counting on a decent bump in data center sales in 4Q (I believe El Capitan revenue hits or starts to hit 4Q and MI300 sales begin as well).

Slides here: https://d1io3yog0oux5.cloudfront.net/_ac518be7668b3338f9024b2d46821dd2/amd/db/778/6929/file/AMD+Q2'23+Earnings+Slides.pdf

 

[adroc_thurston]

Softie Q3 guide, overall ok.

 

[H433x0n]

For people like me that are interested in comparing QoQ revenue.

Intel Q1 CCG: 5.80B
Intel Q2 CCG: 6.80B +17%

AMD Q1 Client: 739M
AMD Q2 Client: 998M +35%

Intel Q1 DCAI: 3.7B
Intel Q2 DCAI: 4.0B + 8%

AMD Q1 DC: 1295M
AMD Q2 DC: 1321M +2%

 

[Saylick]

Looks like AMD is banking on a big Q4, roughly 7B in revenue for their target of 23.5B in FY 2023 to be true.

 

[controlflow]

Not bad but looks like macroeconomics will still be a headwind for Q3 and demand will take a bit longer to normalize than originally hoped. Q4 onwards could be a decent recovery.

 

[Saylick]

Looks like MI300 still won't ramp up until next year, with the big server Q4 revenue coming in due to El Capitan.

 

[A///]

Not bad and expected. Most were expecting worse figs for intel and amd a few months ago.

 

[trivik12]

if their AI chip is any kind of competitor to H100, H2 should show reasonable numbers as NVIDIA has supposedly sold out of all their chips for the year. So only NVDA at this point is able to show crazy numbers just with their AI chip sales.

 

[adroc_thurston]

if their AI chip is any kind of competitor to H100

Oh, MI300X does very very very very very bad things to H100.

H2 should show reasonable numbers as NVIDIA has supposedly sold out of all their chips for the year.

No, it takes time to qualify brand new shiny something platforms.
So Q1'24 or therein where incremental AI revenues starts going in.

 

[trivik12]

if there is a shortage of chips AMD should be able to sell MI250 at least. That has been around for a while.

 

[Hitman928]

Looks like AMD is banking on a big Q4, roughly 7B in revenue for their target of 23.5B in FY 2023 to be true.

Yeah, I'm waiting on the conference call transcript to see if they reaffirm this target or back off of it a bit.

 

[Markfw]

@Hitman928 , any word on TR pro Zen 4 based ? When those come out, I can get a decent heatsink for my Genoas

 

[jpiniero]

Client side down big still but recovered significantly from Q1. Seems that AMD was willing to sacrifice market share on the client side to Intel in order to maintain margins. GPUs also hurting AMD in the gaming sector. Semi-custom (consoles and handhelds) grew 4% Y/Y.

Maybe it's an indication that Little Phoenix is somewhat of a hit. Guess we will find out soon.

4% YoY for Consoles kind of sucks because this is supposed to be the peak year. Plus Microsoft was at least making some noise that they expect a jump in sales because of Starfield.

 

[Henry swagger]

For people like me that are interested in comparing QoQ revenue.

Intel Q1 CCG: 5.80B
Intel Q2 CCG: 6.80B +17%

AMD Q1 Client: 739M
AMD Q2 Client: 998M +35%

Intel Q1 DCAI: 3.7B
Intel Q2 DCAI: 4.0B + 8%

AMD Q1 DC: 1295M
AMD Q2 DC: 1321M +2%

Sapphire rapids and raptor lake gave intel a nice boost




Really? Did you have to pull this comment in an AMD thread and try to poke a bee hive?
Do it again, and the next time you will get double the warning points.

Moderator Aigo

 

[A///]

Mate this is an amd thread, not an intel thread. go take the intel riding into another thread

 

[H433x0n]

Oh, MI300X does very very very very very bad things to H100.

Aren’t the GCD based on CDNA3?

 

[adroc_thurston]

Aren’t the GCD based on CDNA3?

It's an XCD and yes, that's the uArch.
gfx940 in LLVM target terms.

 

[A///]

hasan's toilet paper website has something about amd enthusiast cards. didn't bother reading the jumble of incoherent translated mess but is it referring to 7700xt and 7800xt cards or something fancier and good compared to the 7900xt and xtx cards?

 

[Vattila]

For an at-a-glance overview, here are my charts. Notably, although Embedded was slightly down, its operating margin increased, now dominating AMD's operating profits even more. Over the next few quarters this will start to even out, apparently, with growth and margins returning in Client and Data Centre. AI growth will arrive in full force in Q4.





Source spreadsheet is available at my OneDrive.

 

[aigomorla]

Due to the nature of this thread, you will keep Intel topics very concise and only when it relates to the topic.
If you mention Intel, I better see the words AMD in the same post which has a comparison that follows a topic in discussion and doesn't side rail it.

Moderator Aigo

 

[A///]

For an at-a-glance overview, here are my charts. Notably, although Embedded was slightly down, its operating margin increased, now dominating AMD's operating profits even more. Over the next few quarters this will start to even out, apparently, with growth and margins returning in Client and Data Centre. AI growth will arrive in full force in Q4.

View attachment 83912

View attachment 83913

Source spreadsheet is available at my OneDrive.

Client growing in this last quarter is awesome news. AMD's price cuts across the range seem to have helped. realistically amd could not have kept their launch prices up when their processors are neck in neck with the other team's but that should change in the future with the good rumors about amd's next gen hardware. either way i think both brands need a serious sit down with their financial teams and address prices and maybe reel in their msrp's because brother in this economy no one is spending that kind of money on a computer when it isn't good food, good drink or something you can wear, maybe if you were a weirdo and made a dress shirt out of a motherboard layer. the 700-1000 class processors need to deliver more in the ways of cores or feature sets for people to get them spending on those kinds of pricy hardware.

 

[Hitman928]

Went through the conference call, AMD is expecting a very big Q4 thanks to improving market conditions and a big revenue boost from El Capitan. They pulled back a little from their previous 2H projections but are still projecting close to 50% rise in data center revenue from 1H23 to 2H23. According to my napkin math, that puts Q4 data center revenue at ~$2.3B and they should set a new record for quarterly revenue ($6.55B is the current record) in Q4 and do so with potentially the highest gross margins they’ve ever recorded.

While they didn’t want to talk too much about it, sounds like they expect 2024 to be a very big year for them. They expect a bit of a drop off in the first half without the El Capitan money but then to be back up in the second half as they ramp MI300 with additional customers.

If things go as they plan, they could be approaching $30B annual revenue as they finish 2024.

 

[Hitman928]

@Hitman928 , any word on TR pro Zen 4 based ? When those come out, I can get a decent heatsink for my Genoas

Nothing that I saw. Seems they are going hard into the AI craze as it is an exploding market. TR is quite small potatoes in their range of products. I’m sure they will still be bringing them to market, but it is definitely one of their lower priority products now.