Q1 23 EPS

$0.60

BEAT +7.14%

Est. $0.56

Q1 23 Revenue

$5.35B

BEAT +1.00%

Est. $5.30B

vs S&P Since Q1 23

+252.1%

BEATING MARKET

AMD +328.8% vs S&P +76.6%

Market Reaction

Did AMD Beat Earnings? Q1 2023 Results

Advanced Micro Devices posted a better-than-expected first quarter, reporting non-GAAP earnings per share of $0.60 against a consensus estimate of $0.56, a 7.14% beat, even as revenue of $5.35 billion slid 9.1% year-over-year in a difficult demand en… Read more Advanced Micro Devices posted a better-than-expected first quarter, reporting non-GAAP earnings per share of $0.60 against a consensus estimate of $0.56, a 7.14% beat, even as revenue of $5.35 billion slid 9.1% year-over-year in a difficult demand environment. The top line still edged past the $5.30 billion Street estimate by 1%, with the quarter's most striking dynamic being the wide divergence across AMD's business units: the Embedded segment surged 163% year-over-year to $1.56 billion on the back of a full quarter of Xilinx contributions, while the Client segment collapsed 65% to $739 million as AMD intentionally reduced shipments to burn off downstream inventory. On a GAAP basis, AMD recorded a net loss of $139 million, weighed down by $823 million in amortization of acquired intangibles tied to the Xilinx integration. AMD's shares fell sharply in after-hours trading despite the headline beats, reflecting investor concern over a muted outlook; the company guided Q2 2023 revenue to approximately $5.30 billion, representing a roughly 19% year-over-year decline, with non-GAAP gross margin expected to hold near 50% before expanding in the second half as PC and server markets recover.

Key Takeaways

  • Embedded segment strength from full quarter of Xilinx revenue and strong end-market demand drove 163% y/y growth
  • Data Center cloud sales grew strong double-digit percentage y/y from EPYC processor adoption
  • Semi-custom SoC revenue in Gaming grew double-digit y/y on strong console demand
  • Client segment revenue declined 65% y/y as processor shipments were intentionally kept below consumption to reduce downstream inventory
  • Non-GAAP operating expense discipline kept costs at $1.587 billion despite revenue headwinds
24/7 Wall St

AMD YoY Financials

Q1 2023 vs Q1 2022, source: SEC Filings

24/7 Wall St

AMD Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 24 Q4 25

“We executed very well in the first quarter as we delivered better than expected revenue and earnings in a mixed demand environment. We launched multiple leadership products and made significant progress accelerating our AI roadmap and customer engagements in the quarter. Longer-term, we see significant growth opportunities as we successfully deliver our roadmaps, execute our strategic data center and embedded priorities and accelerate adoption of our AI portfolio.”

— Lisa Su, Q1 2023 Earnings Press Release