AMD revenue falls 18% as PC market shows continued weakness

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AMD reported an 18% decline in year-over-year revenue in the second quarter and issued a sales forecast that trailed analysts' estimates.

AMD's client group, which includes sales from PC processors, dropped a massive 54% annually to $998 million because of a "weaker PC market," it said. AMD noted that market conditions are improving.

AMD's data center segment reported a decline of 11% to $1.3 billion, which the company said was due to lower server processor sales. AMD said some cloud providers had extra inventory during the quarter.that's intended to build and run the kind of AI models that are at the heart of applications like ChatGPT. AMD said that chip, the MI300X, was currently being provided to customers for sampling.

AMD sells less-powerful chips and networking parts in its embedded segment, which was the only sector of AMD to grow in the period. Revenue in the unit increased 16% year-over-year to $1.5 billion. AMD's gaming segment includes graphics processors for PCs as well as chips for consoles like Sony's PlayStation 5. Sales in the division dropped 4% on an annual basis to $1.6 billion, a decline that could have been worse if not for high demand for "semi-custom" chips like the ones it makes for game consoles.

 

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