|AMD clings onto profitability as Intel burns cash|
AMD clung on to profitability at the end of 2022, just as Intel tipped into a big, fat $700M loss (opens in new tab) for the same period. It was AMD’s server and embedded chips that kept the cash coming in, with AMD’s client PC sales taking a hefty 51% dip and its “gaming” sales including consoles chips slipping slightly by 7%.
Long story short, AMD is doing pretty well given the broader economic downturn and the financial pain Intel and other tech giants like Google are currently experiencing.
The news comes as part of AMD’s full financial dump for the last quarter of 2022 (opens in new tab). Overall profits fell by a scary-sounding 98% to just $21 million for Q4 2022, but on closer examination, AMD’s latest numbers are actually pretty good.
Overall revenues for the quarter are up 16%, year-on-year, for instance, with AMD blaming the dip in profitability largely on write-offs related to the acquisition of FPGA maker Xilinx earlier in the year.
What’s more, if you look at the whole of 2022, AMD’s revenues are up hugely from $16.4 billion in 2021 to $23.6 billion. It’s also intriguing to note that Intel took in $63 billion in revenue in 2022. So, it’s still bigger, but the gap is ever closing. No longer does Intel tower over AMD by orders of magnitude.
Rather than gaming, it’s server and embedded chips where AMD continues to make big inroads into Intel’s market share. For Q4, those products brought in $3.1 billion of AMD’s total $5.6 billion thanks to a 42% increase in sales compared to the same period in 2021.
Sales of AMD’s embedded chip spiked by a startling 1,868%. But that jump is mostly the result of AMD’s purchase of Xilinx and then injection of new embedded chip revenues as a consequence.
Client CPU sales, including desktop and laptop chips meanwhile, dipped by 51% and AMD’s “gaming” segment was down by 7% despite AMD saying sales of chips for consoles, including the Microsoft Xbox, Sony PS5 and Steam Deck were up. In other words, GPUs for PCs sold badly.