The acquisition of Xilinx and growth in its embedded processor business has shielded AMD from a collapse in the consumer PC market.
Preliminary financial figures for Q3 show a 1500% increase year on year in the embedded segment to $1.3bn, overtaking the client segment which fell 53% to $1.0bn. Data centre income remained steady with 8% growth while gaming (from its Radeon acquisition) was flat (see breakdown below).
This led to revenue of $5.6 billion for the quarter, up 29% year-over-year but much lower than the expected 55% growth that was the hangover from the chip boom. The quarterly revenue fell 15%, and gross margins also fell.
The figures highlight the patchy nature of the impending semiconductor market fall.
“The PC market weakened significantly in the quarter,” said Dr. Lisa Su, Chair and CEO of AMD. “While our product portfolio remains very strong, macroeconomic conditions drove lower than expected PC demand and a significant inventory correction across the PC supply chain.”
“As we navigate the current market conditions, we are pleased with the performance of our Data Centre, Embedded, and Gaming segments and the strength of our diversified business model and balance sheet. We remain focused on delivering our leadership product roadmap and look forward to launching our next-generation 5nm data centre and graphics products later this quarter.”
($ in billions)
The figures do not bode well for Intel which had already seen a significant fall in its client business and a restructuring this year.
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