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Advanced micro-devices (NASDAQ:AMD) Chief Executive Lisa Su said on Wednesday that strategies targeting the data center and embedded systems markets will help the chipmaker overcome more weaknesses coming from PCs the field this year.
Speaking on a conference call to discuss AMD’s (AMD) on fourth-quarter results and outlook, Su said there have been “a lot of purchases” related to the company’s data center business, which are (AMD) the biggest source of revenue. In the fourth quarter of 2022, data center sales grew 42% year-over-year to $1.7 billion, with Epyc server processor sales leading those results.
“We expect overall demand to remain mixed, with business likely to pick up steam for the year,” said Su.
Su said that overall, AMD (AMD) is “in a good position to gain market share” in the embedded data center market, even with what she said is expected “increasing levels” in the first half of the year to improve. after the summer and through the end of 2023.
“Our biggest growth driver is the data center,” says Su. “We are optimistic about what we can do [in the data center] and will watch the macro [economic environment] on the client and the game.”
For AMD (AMD), its customer segment includes PC sales, which in the fourth quarter fell 51% from a year ago, to $903 million. The company’s games segment revenue of $1.6 billion was down 7% from the fourth quarter of 2022.
Overall, AMD (AMD) reported a fourth-quarter profit of 69 cents in stock, excluding disposable items, on sales of $5.6 billion. The company also forecast first quarter financial revenue between $5 billion and $5.6 billion.
