AMD on Tuesday posted its first quarterly loss in years due to weak sales of processors for client PCs. Overall, AMD's chip sales dropped 64%. AMD's data center and gaming hardware shipments remained strong and were flat year-over-year, which is quite an achievement given the slowing purchases of servers and weak demand for gaming hardware among consumers. While AMD's management expects the CPU market to start recovering in the second half of the year, the company's outlook for Q2 is not that optimistic.
In the first quarter of FY2023, AMD's revenue amounted to $5.353 billion, which is a 9% decrease compared to the same period in the previous year and a slight decrease compared to the previous quarter. Unfortunately, the company slipped into the red with a $139 million net loss as compared to a $786 million net income in Q1 FY2022. Additionally, AMD's gross margin decreased from 48% in Q1 FY2022 to 44% in Q1 FY2023.
"We executed very well in the first quarter as we delivered better than expected revenue and earnings in a mixed demand environment," said AMD Chair and CEO Dr. Lisa Su.
