At the 2019 CES keynote address, AMD President and CEO Lisa Su discussed the company’s EPYC processor. Despite exceeding LSEG consensus expectations in the quarter ending March, with earnings per share coming in at 62 cents adjusted versus the expected 61 cents, and revenue reaching $5.47 billion instead of the anticipated $5.46 billion.
The outlook for the current quarter is optimistic, with AMD predicting $5.7 billion in sales, which represents a 6% annual growth rate, in line with Wall Street estimates. The company recorded net income of $123 million or 7 cents per share in the reported financials, a significant improvement from a net loss of $139 million or 9 cents per share during the same period last year. Revenue was also up about 2% year-over-year.
One of AMD’s successful segments was Data Center, showing an impressive 80% growth year-over-year to $2.3 billion, driven by sales of its MI300 AI chip which competes with Nvidia’s AI graphics processors. The company noted that it had sold over $1 billion worth of the AI chips since their fourth-quarter 2023 launch. Additionally, AMD’s client segment revenue, their original business of processors for chips and PCs, reported $1.4 billion in first-quarter sales, marking an 85% annual increase.
However, AMD’s gaming segment was their weakest division, declining by 48% annually to $922 million due to lower chip sales for game consoles and PCs. The company also noted a drop in sales in the embedded segment acquired as part of Xilinx acquisition in