AMD Revenue Breakdown By Segment – Data Center, Gaming, Client, etc.

A graphic processing unit. Pexels Images.

This article looks at Advanced Micro Devices (AMD)’s revenue breakdown by segment. AMD’s segments consist of data center, client, gaming, and embedded.

AMD derives its revenue primarily from data center and gaming. These two segments alone accounts for nearly 60% of its total revenue.

Let’s look at the numbers!

Investors interested in AMD’s revenue by country may find more resources on this page: AMD revenue by country.

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Definitions Of Segments

To help readers understand the content better, the following terms and glossaries have been provided.

Data Center: AMD’s Data Center segment primarily includes server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units(APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence(AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers.

Client: AMD’s Client segment primarily includes CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers.

Gaming: AMD’s Gaming segment primarily includes discrete GPUs, and semi-custom SoC products and development services.

Embedded: AMD’s Embedded segment primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.

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How Does AMD Generate Revenue?

AMD generates revenue primarily through selling microprocessors, graphics processors, and related technologies. Here are some key areas:

1. **Consumer Products**: AMD produces CPUs for desktops and laptops, such as their Ryzen series, which cater to gamers and general users.

2. **Data Center Solutions**: Revenue comes from server and workstation processors, particularly the EPYC line, designed for high-performance computing and cloud services.

3. **Graphics Cards**: AMD’s Radeon graphics cards are popular among gamers and professionals requiring advanced graphics performance.

4. **Embedded Solutions**: AMD offers processors for embedded applications in various industries, contributing to its revenue.

5. **Licensing and Royalties**: AMD earns income from licensing intellectual property related to its technologies.

6. **Software and Services**: They provide various software tools and solutions that complement their hardware offerings.

AMD has broadened its revenue streams by diversifying its product portfolio and focusing on high-growth areas like data centers and gaming.

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Total Revenue

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On a consolidated basis, AMD’s total revenue reached $22.7 billion in fiscal year 2023, down slightly from the $23.6 billion reported a year ago.

Compared to the revenue of $16.4 billion reported in fiscal year 2021, AMD’s revenue in 2023 was 38% higher.

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Growth Rates Of Total Revenue

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AMD’s total revenue declined 4% in fiscal year 2023 over 2022. In fiscal year 2022, AMD’s revenue growth was 44% and a massive 68% in 2021. Between fiscal year 2021 and 2023, AMD has registered an average revenue growth rate of 36%.

In other words, AMD’s revenue growth has significantly slowed since fiscal year 2021.

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Revenue From Data Center, Client, Gaming, And Embedded Segments

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AMD’s segments consist of data center, client, gaming, and embedded. The definitions of AMD’s segments are available here: data center, gaming, client, and embedded.

Among all segments, AMD generates the most revenue in the data center segment, totaling $6.5 billion and $6 billion in fiscal year 2023 and 2022, respectively.

Although AMD produced $6.2 billion in the client segment in fiscal year 2022 and nearly $7 billion in 2021, the revenue from this segment significantly declined in 2023, down 25% year-over-year to $4.7 billion.

On the other hand, AMD’s revenue from the data center segment increased by 8% in 2023 over the prior year.

AMD made $6.8 billion in the gaming segment in fiscal year 2022. However, the revenue from this segment was $600 million lower in fiscal year 2023 or a decrease of 9% year-over-year.

AMD’s embedded segment was one of the segments with the lowest revenue, totaling just $5.3 billion in fiscal year 2023. However, the revenue in the embedded segment was 17% higher in fiscal year 2023 over 2022, marking one of the few segments with significant revenue growth.

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Percentage Of Revenue From Data Center, Client, Gaming, And Embedded Segments

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AMD’s segments consist of data center, client, gaming, and embedded. The definitions of AMD’s segments are available here: data center, gaming, client, and embedded.

From the perspective of percentage, AMD’s revenue from the data center appeared to dominate in fiscal year 2023, accounting for nearly 29% of its total, up slightly from 26% in 2022.

AMD’s client segment used to lead in terms of revenue contribution. As seen in the chart, the revenue contribution from the client segment topped 53% in fiscal year 2020, the highest level of any segments. However, the revenue contribution from the client segment has significantly contracted over the years. In fiscal year 2023, the revenue contribution from the client segment plummeted to just 20.5%, less than half of the result in 2020.

AMD’s revenue contribution from the gaming segment has been relatively unchanged since 2020, hovering around 28% in most fiscal years. In fiscal year 2023, AMD’s gaming segment contributed around 27% of sales to the total.

AMD’s embedded segment provided 23.5% of sales to the total, up slightly from 19.3% in 2022.

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Growth Rates Of Revenue From Data Center, Client, Gaming, And Embedded Segments

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AMD’s segments consist of data center, client, gaming, and embedded. The definitions of AMD’s segments are available here: data center, gaming, client, and embedded.

In terms of revenue growth by segment, AMD registered positive results in only two segments in fiscal year 2023, namely the data center and embedded segments. For example, AMD’s revenue growth in the data center segment in fiscal year 2023 totaled 7.5%, while the embedded segment came in at 17% year-over-year.

AMD’s YoY revenue growth was -25% and -9% in the client and gaming segments, respectively, in fiscal year 2023.

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Conclusion

To recap, AMD gets the majority of its revenue from the data center segment, with revenue from this segment accounting for 29% of the total in fiscal year 2023.

AMD’s gaming segment came in at 27% in terms of revenue contribution in fiscal year 2023, while the client segment contributed 20.5% in the same period.

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References and Credits

1. All financial figures presented in this article were obtained and referenced from AMD’s SEC filings, quarterly and annual reports, earnings calls, presentations, etc., which are available in AMD Financial Reports.

2. Pexels Images.

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Disclosure

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