For the 4th quarter ending 12/31/22, AMD revenue was up 16% over the previous year to $5.6 billion. For the full year 2022 AMD revenue was up 44% to $23.6 billion. Net income for the year was down 58% to $1.32 billion.
Gaming revenue was up 21% for the year to $6.8 billion. However, in the fourth quarter of 2022, AMD reported gaming revenue was down 7% from the previous fourth quarter.
Analysis
In recent years, AMD has challenged Intel in CPUs and Nvidia in GPUs. The data center and gaming segments have been two of the biggest areas of growth. In 2022, AMD made one of the largest deals ever in the chip industry when it acquired Xilinx for close to $50 billion. This has resulted in the emergence of a major embedded segment.
Overall, the gaming segment of AMD is relatively small at 29% of revenue ($6.8 billion in 2022). However, AMD is a leading indicator for forecasting hardware trends in the game industry. The new Radeon 7000 series, along with Nvidia’s RTX 40 series of graphics cards are expected to drive sales of high-end PC hardware.
AMD also makes what it calls semi-custom chips that drive the PlayStation 5 and Xbox systems. While the overall gaming segment saw a 7% decline in the fourth quarter, semi-custom chip sales were up.
The biggest news was that AMD’s results were a relief after Intel reported a major decline last week. Overall consumer spending on computers is declining. However, companies like AMD and Nvidia focus on premium game consumers and are also seeing significant growth in data centers. Premium game consumers are expected to grow with the new GPU generation.
For the first quarter of 2023, AMD is expecting a 10% year-over-year revenue decline. This is primarily due to the Client and Gaming segments which are expected to decline. As the Radeon RX 7000 series is rolled out during 2023, revenue in the gaming segment should increase.
