A prolonged drop in demand for PC and laptop processors has hit AMD hard, with the chipmaker posting a A$209 million net loss for the March quarter, with more pain to follow.
AMD posted first quarter revenue of A$8.12 billion, down nine per cent from the year prior.
Client services fell 65 per cent in the first three months of 2023, from A$3.16 billion to A$1.1 billion.
Gaming dropped 6 per cent, to A$2.71, and data centre revenue was flat at A$1.95 billion.
Data centre demand was flat at US$1.3 billion, the gaming segment fell six percent to $1.8 billion, but embedded devices were a bright spot, rising 163 percent from US$595 million to nearly US$1.6 billion.
Credit: AMD
The company’s forecast for the current quarter is bleaker still, with a huge 19 per cent drop from June 2022, to A$7.97 billion.
“Longer-term, we see significant growth opportunities as we successfully deliver our roadmaps, execute our strategic data centre and embedded priorities and accelerate adoption of our AI portfolio,” CEO Lisa Su said.
“For the second quarter we expect sequential growth in our data centre and client segments offset by modest declines in our gaming and embedded segments.
“We remain confident in our growth in the second half of the year as the PC and server markets strengthen and our new products ramp.”
