The Xilinx Took A Chunk, But So Did Plummeting Consumer CPU Sales
AMD’s 2022 earnings were a little more complex than Intel’s, with a mix of good and bad financial news for their investors and other interested parties. For most readers it is the desktop CPU business that is the most interesting and is unfortunately the source of most of the bad news for AMD. The total revenue for Q4 2022 was down over 50% compared to Q4 2021 and down 10% year to year. That sounds bad, but not as bad as that segments actual revenue was down 129% leading to a $152 million loss. It has been a very hard year for consumer products for both AMD and Intel.
Overall, AMD saw an operating loss of $149 million which is down significantly compared last years income of $1.2 billion, That loss came in part from the aforementioned drop in sales of consumer CPUs as well as a 7% drop in GPU net revenue but also because of AMD’s Xilinx purchase. That cost accounted for the vast majority of 2022’s loss, but was offset by the revenue it brought to AMD’s new embedded business.
That embedded business was worth $0.1 billion last year but increased by 1,868% over 2022 to $1.4 billion. The Xilinix purchase certainly hurt their bottom line, but it looks like it will pay off in the long run as it made up a major component in AMD’s earnings, just short of the $1.6 billion in revenue their GPU segment brought in.
AMD’s EPYC segment was the other star, as they saw a very different trend than Intel did. While Intel saw a 30% drop in income from the server room, AMD saw an increase of 42% year to year in the form of $1.7B of revenue with $444M of net income. That alone represents over a quarter of the profit AMD saw this year, though not enough to offset all the other costs and losses.
2022 was a hard year for most, with AMD and Intel being no exceptions. In terms of overall growth however, AMD fared much better than their completion, even if the competition made more profits than AMD did in total unadjusted revenue.