AMD has just set a new record with quarterly sales of 6.8 billion US dollars. Never before has the company led by Lisa SU achieved such high sales in a single quarter. This record hides another, obviously even more positive one for the reds: profits swell again. A comparison with the third quarter of 2023 is illuminating. AMD’s total sales rose by 18% to $6.819 billion. Net income for the quarter was $771 million, 158% higher than a year ago. Gross profit margin increased by a further 1 percentage point over the previous quarter, and now stands at 50%.
The data center division, with its Epyc processors and Instinct GPUs, was a particular source of satisfaction. The latter more than doubled its sales compared with the previous year, making a significant contribution to the margin.
We posted solid financial results in the third quarter with record sales, driven by higher sales of EPYC and Instinct data center products and strong demand for our Ryzen PC processors.
Ryzen also in the spotlight
But while the progress in sales of AI-related products comes as no real surprise, the good news also comes from the consumer market, which has been sluggish for several months. AMD reports strong demand for Zen 5 Ryzen processors. This benefits all Zen 5 CPUs, i.e. not only the Ryzen 9000 for desktops, but also the Ryzen AI 300 family of notebook chips. On the balance sheet, the division responsible for Ryzen products also achieved strong growth: 1.881 billion US dollars, at least 29% more than the previous year.
The only blot on the overall picture: the Radeon division
The gaming division covers Radeon Radeon products and semi-custom chips for game consoles. And it didn’t do particularly well. Sales plummeted by 69%, and the division was barely able to break even, avoiding reporting an operating loss by a hair’s breadth. In all likelihood, it was the semi-custom chip business that weighed heavily on the division. Future product news should help lift the division’s spirits.