AMD recorded lower sales and profits in 2023 due to low sales of PC and gaming chips

AMD has announced its annual results for 2023. The chipmaker recorded lower turnover and profit last year than a year earlier, partly due to disappointing demand on the PC market. AMD did record more revenue in the last quarter of 2023.

AMD booked total sales of $22.68 billion last year. That is four percent less than a year earlier, when the company had a turnover of approximately $ 23.60 billion. Profit also fell by 35 percent last year to $854 million, compared to $1.32 billion a year earlier.

According to AMD, this is partly due to disappointing demand on the PC market. The company saw lower revenue from its client and gaming businesses, which are responsible for AMD’s consumer CPUs and video cards and semi-custom console chips, respectively. At the same time, the data center segment did well for AMD, including the release of the fourth generation EPYC server processors and the Instinct data center GPUs. Last quarter, that division achieved record turnover, according to the manufacturer.

At the same time, the chipmaker expects to have lower turnover and profit again in the first quarter of 2024. This is also due to the low demand in the PC market; AMD expects its revenues from client CPUs, gaming and embedded products to decline next quarter. In particular, sales from semi-custom chips, which are mainly used in gaming consoles such as the Xbox Series consoles and PS5, will decline this quarter. Data center turnover would remain approximately the same, the American chip company expects.

Regarding the latter, AMD states that it expects to sell more than $3.5 billion in AI GPUs by 2024, according to also writes Tom’s Hardware. This will probably be mainly due to the recently released Instinct MI300 series. However, AMD would not expect a bottleneck in supplies; Nvidia’s AI chips currently have a months-long wait due to excessive demand.