![]() ![]() But we don’t necessarily believe that AMD will make much profit off this deal, as is the long history of capability-class supercomputers sold to the national labs of the world. This makes sense, given that the machine costs $500 million and the AMD motors represent the vast majority of the cost. In the first half of 2023, when in theory AMD should have been minting coin with its “Genoa” Epyc 9004 processors launched in November last year, demand has been sluggish thanks to a stall in spending by the hyperscalers and cloud builders and skittishness by enterprises, and for 1H 2023, revenues are only $2.62 billion for the Data Center group, down 5.9 percent, and profitability at the operating level fell by 67.2 percent to a mere $295 million.ĪMD and Wall Street keep talking about how the “El Capitan” supercomputer being built by Hewlett Packard Enterprise using AMD CPUs and GPUs will boost revenues by several hundred million dollars. In the first half of 2022, AMD’s Data Center group had $2.78 billion in revenues and $899 million in operating profit, which represented 32.3 percent of revenues. ![]() (That’s a lot of ones, isn’t it?) The sales and profitability of the Data Center group were pretty much a carbon copy of what happened in the first quarter. The Data Center group had sales of $1.32 billion in the quarter, down 11.1 percent, and operating income collapsed by 68.9 percent to $147 million, or 11.1 percent of revenue. AMD had a $20 million operating loss, and it was $46 million in other income and a $23 million tax benefit that allowed AMD to post that $27 million gain.ĪMD ended the quarter with $6.29 billion in cash and short term investments as the quarter ended, so it has plenty of cushion to get through a tough spot in the PC business and a slowdown in the datacenter business. And like Intel in the same quarter, AMD had to resort to using tax benefits to even get there. In the second quarter ended in June, AMD’s overall revenues were down 18.2 percent to $5.36 billion and thanks to investments in its various chip lines and lower volumes in the PC and gaming lines the company’s profits collapsed from $447 million in the year ago period (which was no great shakes in its own right) to a mere $27 million in the current quarter. But the company is projecting that its datacenter business will still have somewhere around 50 percent growth in the second half of 2023 compared to the first half and that will make up for a lot of lost ground. If you see inaccuracies in our content, please report the mistake via this form.With a server recession underway and its latest Epyc CPUs and Instinct GPU accelerators still ramping, this was a predictably soft, but still not terrible in the scheme of things, quarter for AMD. If we have made an error or published misleading information, we will correct or clarify the article. Our editors thoroughly review and fact-check every article to ensure that our content meets the highest standards. Our goal is to deliver the most accurate information and the most knowledgeable advice possible in order to help you make smarter buying decisions on tech gear and a wide array of products and services. ZDNET's editorial team writes on behalf of you, our reader. Indeed, we follow strict guidelines that ensure our editorial content is never influenced by advertisers. Neither ZDNET nor the author are compensated for these independent reviews. This helps support our work, but does not affect what we cover or how, and it does not affect the price you pay. When you click through from our site to a retailer and buy a product or service, we may earn affiliate commissions. And we pore over customer reviews to find out what matters to real people who already own and use the products and services we’re assessing. We gather data from the best available sources, including vendor and retailer listings as well as other relevant and independent reviews sites. ZDNET's recommendations are based on many hours of testing, research, and comparison shopping. ![]()
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