In the quarter of 2023, AMD released its results, which met the expectations of analysts. The company’s revenue even exceeded estimates. However, their forecast for the quarter fell short of expectations, resulting in a decline of over 6% in AMD stock during after-hours trading.
The earnings per share (EPS) for the company were reported at 77 cents, adjusted accordingly, and aligned with the value. The total revenue reached $6.17 billion, surpassing the expected $6.12 billion mark. Looking ahead, AMD projected sales of $5.4 billion for the quarter, which is below what analysts had predicted at $5.73 billion.
AMD vs Intel Q4 2023
AMD experienced growth in its data center business which encompasses server CPUs and AI chips with a year-on-year increase of 38%. This growth led to sales amounting to $2.28 billion. The success can be attributed to increased demand for the graphics processors used in AI applications. Despite focusing on CPUs for computers and servers AMD data center business now holds its prominent position as the largest segment.
The semiconductor company shared news about its AI chips by announcing an expected sales figure of $3.5 billion from data center GPUs, under its “Instinct” brand for this year—an increase compared to the previous estimate of $2 billion.
AMD showcased its partnerships with cloud providers, such as Microsoft, Oracle, and Meta. They demonstrated how they are implementing the Instinct GPU for their AI tasks as well as external services.
On the other hand, Intel Corporation exceeded expectations with its Q4 results for another quarter. Pat Gelsinger, the CEO of Intel highlighted the company’s progress in its transformation journey by emphasizing execution and fostering innovation. During the quarter Intel generated $4.6 billion in cash from operations. Paid out $0.5 billion in dividends.
Intel’s financial results for the year 2023 demonstrated efficiencies and cost savings. They generated a total of $11.5 billion in cash from operations. Paid out dividends of $3.1 billion. David Zinsner, Intels CFO emphasized their commitment to achieving $3 billion in cost savings in 2023 while also outlining expectations for efficiencies in 2024.
Intel made changes within its business units by integrating the Accelerated Computing Systems and Graphics Group into its Client Computing Group and Data Center and AI Group. This modification, in segment reporting, aims to enhance go-to-market capabilities and scale businesses effectively while reducing costs.
Looking ahead to February 21st, Intel is gearing up to host its flagship foundry event called IFS Direct Connect. Intel’s upcoming event aims to highlight its foundry ecosystem and shape the future of silicon design, development, and manufacturing. On top of that, the company has announced a dividend of $0.125, per share which will be paid out on March 1, 2024, to shareholders who held shares as of February 7, 2024.
