Reporting on the financial statements from multi-billion dollar companies isn't our usual fare but when the company in question has a huge impact on the world of PC gaming, it's worth paying attention to how well things are going. AMD'shave been announced and it's great news for its big processor sectors but not so great for its gaming division.
Throughout the second half of 2022 and the first half of 2023, the client division was losing money quite badly, but for the last six months, things have steadily improved. Compared to this time last year, client revenue has improved by 85% and the operating income has gone from a loss of $172 million to a profit of $86 million. It's a similar story with data center, which has enjoyed gains of 81% and 268% in revenue and operating income, compared to the first quarter of 2023.
The PS5 was launched back in November 2020, so the console is past the peak of its sales and while the much-discussedwill probably give AMD a little bit of a boost when that comes out, then gaming will probably continue to see a decline in its fortunes as time goes on. Things will only significantly improve when the next generation of consoles appears. AMD doesn't have a big enough share of the discrete graphics card market for its Radeon chips to pull in lots of money.
"We believe the market is on track to return to annual growth in 2024," said Dr Su,"driven by the start of an enterprise refresh cycle and AI PC adoption. We see AI as the biggest inflection point in PC since the Internet with the ability to deliver unprecedented productivity and usability gains."