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August 1, 2023. Superior Micro Units (AMD) reported a income decline of 18% within the second quarter of 2023, worse than analysts’ expectations. The chipmaker’s income got here in at $5.36 billion, down from $6.57 billion in the identical quarter final 12 months.
The PC market, which is AMD’s largest market, continued to wrestle within the second quarter. Shipments of private computer systems fell 13.4% year-over-year, in accordance with IDC. This was the seventh consecutive quarter of declining PC shipments.
AMD’s shopper section, which incorporates gross sales from PC processors, noticed income fall 54% within the second quarter. The corporate mentioned that the weak point within the PC market was as a consequence of quite a lot of elements, together with rising inflation, the continued chip scarcity, and the conflict in Ukraine.
AMD’s information heart section additionally noticed income decline within the second quarter, falling 11% to $1.3 billion. The corporate mentioned that the weak point within the information heart market was as a consequence of a slowdown in cloud spending.
Regardless of the income decline, AMD’s earnings per share beat analysts’ expectations. The corporate earned 58 cents per share within the second quarter, in comparison with 57 cents per share anticipated by analysts.
AMD’s CEO, Lisa Su, mentioned that the corporate is “seeing indicators of enchancment” within the PC market. She mentioned that AMD is “well-positioned” to learn from the restoration within the PC market.
Su additionally mentioned that AMD is “seeing robust demand” for its merchandise within the information heart market. She mentioned that AMD is “assured” within the long-term progress of the information heart market.
General, AMD’s second-quarter outcomes have been disappointing. Nevertheless, the corporate’s earnings per share beat expectations, and Su mentioned that she is “assured” within the long-term progress of the corporate.
Analyst Take
AMD’s income decline was worse than anticipated, however the firm’s earnings per share beat expectations. This means that AMD’s margins are holding up properly, even in a weak market.
The PC market is anticipated to get well within the second half of 2023, and AMD is well-positioned to learn from this restoration. The corporate can be seeing robust demand for its merchandise within the information heart market.
General, AMD’s second-quarter outcomes have been disappointing, however the firm continues to be well-positioned for long-term progress.
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