AMD revenue falls 18% as PC market shows continued weakness

AMD reported a gross diminution of 18% successful its fiscal second-quarter net report connected Tuesday and issued a forecast that trailed analysts' estimates. Still, the banal roseate much than 4% successful extended trading.

Here's however the institution did:

Earnings: $0.58 per share, adjusted versus $0.57 per stock expected by Refinitiv statement estimates.Revenue: $5.36 cardinal versus $5.31 cardinal expected by Refinitiv statement estimates.

For the 3rd quarter, AMD said it expects $5.7 cardinal successful sales, portion analysts were looking for gross of $5.81 billion. It said that it expected its information halfway and embedded divisions to turn erstwhile looking astatine the full fiscal year.

The chipmaker reported nett income of $27 million, oregon 2 cents per share, down from $447 million, oregon 27 cents per share, successful the aforesaid 4th past year. AMD excludes definite losses connected investments and acquisition-related costs from its earnings.

AMD's processor concern has slowed successful caller quarters, reflecting a heavy slump successful the planetary PC market. AMD's full gross dropped from $6.55 cardinal a twelvemonth agone and AMD has reported 2 consecutive quarters of declining year-over-year revenue.

But AMD is 1 of the fewer companies making high-end graphics processing units (GPUs) needed for artificial intelligence, and analysts are watching to spot if its server chips tin instrumentality marketplace stock distant from Intel. Intel, AMD's superior competitor, posted a astonishment nett past week and income that were higher than expected.

AMD CEO Lisa Su said connected a telephone with analysts that the institution is expanding its AI-related probe and improvement spending, and that the institution has developed an AI strategy including AI-specific chips.

AI could besides assistance PC spot sales, AMD said.

"Going forward, we spot AI arsenic a important PC request operator arsenic Microsoft and different ample bundle providers incorporated generative AI into their offerings," Su said.

AMD's lawsuit group, which includes income from PC processors, dropped a monolithic 54% annually to $998 cardinal due to the fact that of a "weaker PC market," it said. AMD noted that marketplace conditions are improving.

"We expect our lawsuit conception volition turn successful the seasonally-stronger 2nd fractional of the twelvemonth based connected the spot of our merchandise portfolio," Su said.

AMD's information halfway conception reported a diminution of 11% to $1.3 billion, which the institution said was owed to little server processor sales. AMD said immoderate unreality providers had other inventory during the quarter.

During the quarter, AMD announced a caller chip that's intended to physique and tally the benignant of AI models that are astatine the bosom of applications similar ChatGPT. AMD said that chip, the MI300X, was presently being provided to customers for sampling and that accumulation of the spot would ramp successful the 4th quarter.

AMD sells less-powerful chips and networking parts successful its embedded segment, which was the lone assemblage of AMD to turn successful the period. Revenue successful the portion accrued 16% year-over-year to $1.5 billion.

AMD's gaming conception includes graphics processors for PCs arsenic good arsenic chips for consoles similar Sony's PlayStation 5. Sales successful the part dropped 4% connected an yearly ground to $1.6 billion, a diminution that could person been worse if not for precocious request for "semi-custom" chips similar the ones it makes for crippled consoles.

WATCH: AMD needs to present connected A.I. successful the adjacent fewer quarters