AMD was punished by the PC industry downturn, but its datacenter business saved the day in the fourth quarter, with the firm reporting a net income of $21 million on revenues of $5.6 billion in the quarter ending December 31. Net income was down 98 percent, but revenues jumped 16 percent, surprising Wall Street.

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

Revenues from AMD’s Client segment, which sells its PC chipsets, fell 51 percent year-over-year (YOY) to $903 million thanks to “reduced processor shipments resulting from a weak PC market and a significant inventory correction across the PC supply chain,” the firm said. And its Gaming segment fell 7 percent to $1.6 billion. But the Data Center segment delivered 42 percent revenue growth to $1.7 billion “primarily driven by strong sales of EPYC server processors.”

Looking ahead, AMD said that revenues in the current quarter will decrease by approximately 10 percent, with further declines in its Client and Gaming segments.