Advanced Micro Devices, Inc. (AMD) announced its financial results for the fourth quarter and full year of 2022, revealing strong growth across its data center and embedded segments. The company reported a revenue of $5.6 billion for the fourth quarter and $23.6 billion for the full year, along with a net income of $21 million and $1.3 billion, respectively.
Revenue Growth in Fourth Quarter and Full Year 2022
The fourth quarter of 2022 saw a revenue growth of 16% YoY, driven primarily by the growth in the embedded and data center segments. The full year revenue of $23.6 billion was also up from the previous year. Gross margin for the fourth quarter was 43%, with a non-GAAP gross margin of 51%. The gross margin for the full year was 45% with a non-GAAP gross margin of 52%.
Financial Segment Summary
AMD’s data center segment saw a 42% YoY growth in revenue, driven by strong sales of its EPYC server processors. The client segment revenue, on the other hand, decreased by 51% due to reduced processor shipments and a weak PC market. The gaming segment revenue was down 7% YoY due to lower gaming graphics sales, but was partially offset by higher semi-custom product revenue. The embedded segment revenue saw a 1,868% YoY growth, primarily driven by the inclusion of Xilinx embedded revenue.
Strategic Acquisition of Xilinx
The acquisition of Xilinx was a significant factor in AMD’s strong financial performance in 2022. The acquisition helped diversify the company’s business and strengthen its financial model. The inclusion of Xilinx’s embedded revenue also played a major role in the growth of AMD’s embedded segment.
Outlook for 2023
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