Epyc and the embedded segment helped AMD hit record highs in 2022 despite a slowdown in the second half of the year.

In short: The current global economic downturn is hurting many industries, including the PC market, which saw shipments drop 28% over the holiday season. AMD felt this effect in its graphics and client PC segment in the fourth quarter of last year, but believes that the situation will improve after the current quarter. However, in general, 2022 was a record year for Lisa Su’s company.

AMD’s Q4 and full-year financial results show a record high for all of 2022, driven by strong performance in the Data Center (Epyc processors) and Embedded divisions. The company earned $23.601 billion last year, up 44% from the $16.434 billion it earned in 2021.

However, the picture was not so rosy in the fourth quarter of 2022. Revenue rose 16% to $5.6 billion, but net income was down 98% from $974 million in the fourth quarter of 2021 to $21 million, though AMD says most of that was due to the acquisition of Xilinx. Client CPU revenue fell 51% and gaming GPU revenue fell 7%. AMD’s fourth-quarter operating loss was $149 million.

“2022 has been a strong year for AMD as we delivered best-in-class growth and record revenue despite a weak PC environment in the second half of the year,” said AMD CEO Dr. Lisa Su. “We have accelerated the growth of our data center and completed the strategic acquisition of Xilinx, significantly diversifying our business and strengthening our financial model. While the demand environment is mixed, we are confident in our ability to increase market share in 2023 and drive long-term growth. based on our differentiated product portfolio.”

While AMD’s data center segment generated the most net income in the fourth quarter, it was the embedded systems division that really stood out, especially when it came to operating income; Embedded products contributed more than half of AMD’s total earnings in the fourth quarter. It seems that the acquisition of Xlinx was a clever move on the part of the red team.

IDC says global traditional PC shipments fell to 67.2M units in the fourth quarter of 2022, down 28.1% from the same period in 2021, while Gartner says shipments hit their biggest decline since the mid 1990s. AMD expects revenue for the current quarter (ending March 31) to be around $5.3 billion, down about 10% from the previous year, and believes customer and gaming revenue will continue to fall in the next quarter. However, Su seemed confident that the landscape would improve by the end of the year. “The first quarter should be the bottom for us in the PC segment,” said the head of AMD.