Advanced Micro Devices (NASDAQ: AMD) Chief Executive Lisa Su said Wednesday that strategies aimed at the data center and embedded systems markets should help the chipmaker overcome more weakness coming from the PC sector this year.
Speaking on a conference call to discuss AMD’s ( AMD ) fourth-quarter results and outlook, Su said there are “a lot of things” involving the company’s data center business, which is AMD’s ( AMD ) biggest source of revenue. During the fourth quarter of 2022, data center sales grew 42% year-over-year to $1.7 billion, with sales of Epyc server processors leading the way.
“We expect overall demand to remain mixed,” Su said, with business likely to pick up as the year progresses.
Su said overall AMD ( AMD ) is “well positioned to gain share” in the embedded data center market, even with what she said are expected to be “elevated inventory levels” in the first half of the year. this should improve after the summer and end of 2023.
“Our biggest growth driver is the data center,” Su said. “We are confident in what we can do [in the data center] and will watch macro [economic environment] about the client and the gameplay.”
For AMD (AMD), the client segment includes PC sales, which fell 51% year over year to $903 million in the fourth quarter. The company’s gaming segment sales of $1.6 billion fell 7% from the fourth quarter of 2022.
Overall, AMD ( AMD ) reported fourth-quarter earnings of 69 cents a share, excluding one-time items, on sales of $5.6 billion. The company also forecast fiscal first-quarter revenue in the range of $5 billion to $5.6 billion.