AMD Announces Strong Q3 2023 Financial Results Driven by Ryzen and EPYC Processors
SANTA CLARA, Calif., Oct. 31, 2023 (GLOBE NEWSWIRE) — AMD (NASDAQ:AMD) today reported revenue of $5.8 billion for the third quarter of 2023, with a gross margin of 47%. Operating income reached $224 million, while net income totaled $299 million, resulting in diluted earnings per share of $0.18. On a non-GAAP basis, the company achieved a higher gross margin of 51%, operating income of $1.3 billion, net income of $1.1 billion, and diluted earnings per share of $0.70
SANTA CLARA, Calif., Oct. 31, 2023 – Advanced Micro Devices (AMD) announced its financial results for the third quarter of 2023, showcasing remarkable performance driven by the demand for its Ryzen 7000 series PC processors and record-breaking sales of server processors. The company reported revenue of $5.8 billion, gross margin of 47%, operating income of $224 million, net income of $299 million, and diluted earnings per share of $0.18. On a non-GAAP basis, AMD achieved even more impressive results, with a gross margin of 51%, operating income of $1.3 billion, net income of $1.1 billion, and diluted earnings per share of $0.70 (AMD, 2023).
Dr. Lisa Su, the Chair and CEO of AMD, attributed the strong revenue and earnings growth to the increasing demand for Ryzen 7000 series PC processors and the significant growth trajectory of their data center business. She highlighted the strength of their EPYC CPU portfolio and the growing deployment of Instinct MI300 accelerators among hyperscale, enterprise, and AI customers (AMD, 2023).
Jean Hu, the EVP, CFO, and Treasurer of AMD, expressed satisfaction with the company’s execution in Q3, noting year-over-year growth in revenue, gross margin, and earnings per share. Looking ahead to Q4, Hu expects strong growth in the Data Center segment and continued momentum in the Client segment, partly offset by lower sales in the Gaming segment and softening demand in the embedded markets (AMD, 2023).
GAAP Quarterly Financial Results
| Q3 2023 | Q3 2022 | Y/Y | Q2 2023 | Q/Q | |
|---|---|---|---|---|---|
| Revenue ($M) | $5,800 | $5,565 | Up 4% | $5,359 | Up 8% |
| Gross profit ($M) | $2,747 | $2,354 | Up 17% | $2,443 | Up 12% |
| Gross margin | 47% | 42% | Up 5 ppts | 46% | Up 1 ppt |
| Operating expenses ($M) | $2,533 | $2,426 | Up 4% | $2,471 | Up 3% |
| Operating income (loss) ($M) | $224 | $(64) | Up 450% | $(20) | Up 1,220% |
| Operating margin | 4% | (1%) | Up 5 ppts | 0% | Up 4 ppts |
| Net income ($M) | $299 | $66 | Up 353% | $27 | Up 1,007% |
| Diluted earnings per share | $0.18 | $0.04 | Up 350% | $0.02 | Up 800% |
AMD’s GAAP quarterly financial results for Q3 2023 showcased remarkable growth across various metrics. The company reported a 4% increase in revenue compared to the same period last year, reaching $5.8 billion. The gross profit increased by 17% to reach $2.7 billion, resulting in a gross margin of 47%, up 5 percentage points from the previous quarter. AMD also achieved a significant improvement in operating income, with a 450% increase to $224 million. The net income saw a remarkable 353% increase, reaching $299 million, leading to a diluted earnings per share of $0.18 (AMD, 2023).
Non-GAAP(*) Quarterly Financial Results
| Q3 2023 | Q3 2022 | Y/Y | Q2 2023 | Q/Q | |
|---|---|---|---|---|---|
| Revenue ($M) | $5,800 | $5,565 | Up 4% |
