Benefiting from the growth of businesses such as embedded and data centers, AMD's revenue will increase by 44% to US$23.6 billion in 2022

On January 31 local time, AMD announced its financial report for the fourth quarter of 2022, exceeding Wall Street's expectations for its sales and profits. During the reporting period, AMD had a turnover of US$5.6 billion, a gross profit margin of 43%, an operating loss of US$149 million, a net income of US$21 million, and diluted earnings per share of US$0.01. On a non-GAAP basis, gross margin was 51%, operating income was $1.3 billion, net income was $1.1 billion, and diluted EPS was $0.69.

AMD said that in the fourth quarter of 2022, the company's data center business division's turnover was US$1.7 billion, a year-on-year increase of 42%, which was mainly due to the strong sales growth of EPYC (Dragon) server processors; It was US$903 million, a year-on-year decrease of 51%, mainly due to the weak PC market and the inventory adjustment of the entire PC supply chain, resulting in a decrease in processor shipments.

In addition, Gaming Division revenue was $1.6 billion, down 7% year-over-year primarily due to lower gaming graphics sales, partially offset by higher semi-custom product revenue; Embedded Business Unit revenue was $1.4 billion, down 7% year-over-year. An increase of 1868%, mainly due to the consolidation of Xilinx Embedded business revenue; compared with an operating loss of $117 million in the same period in 2021, the operating loss of all other businesses in the quarter was $1.4 billion, mainly due to the acquisition Amortization of Xilinx related intangible assets.

Overall, for the full year of 2022, AMD's turnover will be US$23.6 billion, gross profit margin will be 45%, operating income will be US$1.3 billion, net income will be US$1.3 billion, and diluted earnings per share will be US$0.84. On a non-GAAP basis, gross margin was 52%, operating income was $6.3 billion, net income was $5.5 billion, and diluted EPS was $3.50.

AMD further stated that due to increased turnover in the embedded, data center and gaming businesses, total turnover in 2022 will reach US$23.6 billion, a year-on-year increase of 44% from 2021, partially offset by lower client business turnover; On the basis of the combination of AMD and Xilinx, the consolidated (pro forma) turnover in 2022 will be US$24.1 billion, compared with US$20.1 billion in 2021, an increase of 20%.

In addition, during the reporting period, AMD’s gross profit margin was 45%, a decrease of 3 percentage points compared with 2021, mainly due to the amortization of intangible assets related to the acquisition of Xilinx. On a non-GAAP basis, gross margin was 52%, an increase of 4 percentage points compared to 2021, mainly due to a richer product portfolio, increased embedded and data center business revenue, partially driven by lower client business business offset by the amount.

In terms of performance highlights, AMD's financial report shows that, first, the data center business continues to grow with a strong momentum. AMD announced the launch of the 4th generation AMD EPYC (Dragon) CPU, which can provide leading performance and energy efficiency. The latest AMD EPYC processors are based on the "Zen 4" core, with new architectures, processes and features to power modern data centers. Cloud service providers including Google Cloud, Microsoft and Oracle Cloud Infrastructure have announced planned solutions that take advantage of the powerful performance and security features offered by 4th Gen AMD EPYC CPUs.

Second, AMD continues to maintain its leading position in the embedded market. In addition, together with partners such as Microsoft, HP, Lenovo, Magic Leap and Intuitive Surgical, AMD delivered the opening keynote speech at CES 2023, demonstrating AMD's next-generation technology to promote artificial intelligence, hybrid office, gaming, medical and sustainable Developments in computing and other fields.

Third, AMD released the AMD Radeon RX 7900 series graphics card, the world's first gaming graphics card designed with AMD's advanced chiplets. They deliver exceptional performance and ultra-power efficiency to power the most hardware-demanding games at high frame rates at 4K and above. ,

Fourth, AMD announced adjustments to the senior management team. After 39 years at the company, AMD Executive Vice President and Chief Financial Officer and Treasurer Devinder Kumar announced his retirement. The company appointed Jean Hu as executive vice president, chief financial officer and treasurer of AMD, effective January 23, 2023, and announced the promotion of Forrest Norrod to executive vice president and general manager of the Data Center Solutions Division.

"Despite a weak PC environment in the second half of 2022, we still achieved high-speed growth and record turnover for the full year. AMD accelerated data center growth momentum, completed the strategic acquisition of Xilinx (Xilinx), thus diversifying our business and strengthening our financial model. Despite the complex environment on the demand side, we are confident based on our differentiated product portfolio Win more market share in 2023 and achieve long-term growth."

"AMD is still resilient, and even their data center chips are gaining in competition with Intel," said Wayne Lam, an analyst at CCS Insight. Also, while Intel Corp. still dominates the PC and server processing chip market with a share of more than 70 percent, it is down from more than 90 percent in 2017, according to the International Data Corporation (IDC). And AMD occupies a large part of this market share.