AMD released its fiscal results for the fourth quarter and fiscal year 2022 and because of strong demand for AMD’s data centre EPYC processors, the company set an all-time revenue record for the full year. Meanwhile, consumer CPU and GPU sales fell significantly in the fourth quarter, clearly limiting the company’s growth in Q4.
AMD’s revenue in Q4 2022 was $5.6 billion, up 16% year on year and flat with Q4 2022. Meanwhile, the company’s net income fell 98% to $21 million in the same period last year and gross margin fell to 43% in Q4 2021 from 50% in Q4 2021.
AMD earned $23.601 billion in fiscal year 2022, up 44% from $16.434 billion in fiscal year 2021. This was AMD’s best year ever, but it could have been even better if demand for consumer processors and graphics cards had been stronger in the third and fourth quarters.
Because of the softening PC market, AMD had a mixed year in 2022, with demand for its products meeting expectations in the first half but falling sharply in the second half, affecting full-year results.
AMD’s Client Computing Business revenue fell 51% year on year in Q4 to $0.903 billion.
The business unit lost $152 million, compared to a profit of $530 million in the same quarter last year. The most concerning aspect of AMD’s consumer CPU business is that in a quarter when the company introduced its brand-new Ryzen 7000-series processors, average selling prices of its CPUs were flat year over year, implying sluggish sales of the latest parts.
On the one hand, the unit earned $1.6 billion in revenue (a 7% decrease year over year) and $266 million in profit (a decrease from $407 million in Q4 2021). However, this strong result was achieved primarily due to AMD’s ability to sell a large number of system-on-chips for consoles, while sales of its graphics processors for discrete desktop PC GPUs were down year over year.
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