AMD Q4 2023 Earnings

Call Details

• Call Title: Advanced Micro Devices Q4 2023 Earnings Call
• Date: January 30, 2024 at 10:00 PM UTC
• Management Team:
  • Lisa Su (Chair and Chief Executive Officer)
  • Jean Hu (Executive Vice President, Chief Financial Officer, and Treasurer)
  • Mitch Haws (Vice President, Investor Relations)

Call Summary

Financial Performance

• Fourth quarter revenue was $6.2B, which represented a 10% increase year over year and a 6% sequential increase.
• Full year 2023 revenue was $22.7B, which represented a 4% decline year over year.
• Data center segment revenue was $2.3B in Q4, up 38% year over year and up 43% sequentially.
• Client segment revenue was $1.5B in Q4, up 62% year over year and flat sequentially.
• Gaming segment revenue was $1.4B in Q4, down 17% year over year and down 9% sequentially.
• Embedded segment revenue was $1.1B in Q4, down 24% year over year and down 15% sequentially.
• Non-GAAP gross margin for Q4 was 51%, flat year over year, and non-GAAP operating income was $1.4B, representing a 23% operating margin.
• Diluted earnings per share was $0.77 for Q4, up 12% year over year, and full year 2023 EPS was $2.65.

Guidance

• First quarter 2024 revenue is expected to be approximately $5.4B plus or minus $300M.
• First quarter non-GAAP gross margin is expected to be approximately 52%.
• First quarter non-GAAP operating expenses are expected to be approximately $1.73B.
• First quarter non-GAAP effective tax rate is expected to be approximately 13%.
• Data center GPU revenue guidance was updated from prior expectation of flattish Q4-to-Q1 and >$2B for 2024 to now expect sequential growth in Q1 and to exceed $3.5B in 2024.
• Full-year 2024 directional expectations include increases in data center and client revenue and year-over-year declines in embedded and gaming revenue.
• Segment-level Q1 expectations include data center revenue flat sequentially (server decline offset by GPU ramp), embedded revenue declining, client revenue declining seasonally, and gaming revenue declining by a significant double-digit percentage sequentially.