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AMD’s sales increased to €5.6 billion in the third quarter of this year. The revenue of embedded, gaming and datacenter processors rose sharply. Like Intel, AMD sold fewer processors in the PC segment.

AMD’s sales grew to €5.6 billion in the third quarter of 2022, up 29 percent from the same period last year. The results are positive in comparison to competitors like Intel and Samsung. Nonetheless, like its competitors, AMD failed to meet analyst revenue expectations of €6.8 billion. Furthermore, the organization issued a revenue warning last month predicting disappointing earnings in the fourth quarter.

More server processor sales

The datacenter, gaming and embedded segments did well. Revenue in the datacenter segment rose 45 percent to €1.6 billion. AMD attributed the increase to a rise in server processor sales. Revenue in the gaming segment rose 40 percent to €1.6 billion. Despite the overall improvement, gaming GPU sales were disappointing.

Revenue in the embedded segment recorded the highest growth of all segments. Sales increased by more than 1,500 percent to a total of €1.3 billion. The growth was driven by the embedded portfolio of Xilinx, a company acquired by AMD earlier this year.

In contrast to the market segments mentioned above, sales of processors for PCs and laptops were on the decline. Like its competitors, AMD’s PC business suffers from macroeconomic conditions and supply chain issues. Revenue dropped 40 percent to a total of €1 billion. The outlook for the fourth quarter isn’t much better.

Revenue expectations

Overall, AMD expects to end the year well through its strong portfolio and revenue in the datacenter and embedded segments. The organization forecasted a 14 percent revenue increase (€5.5 billion) for the fourth quarter. AMD is much more optimistic than its competitors, who mostly expect losses. The forecast for the entirety of 2022 was set at roughly €24 billion, up 43 percent from 2021.

Tip: AMD issues revenue warning; shares down sharply