By Sabela Ojea

Advanced Micro Devices Inc. on Tuesday posted a drop in profit in its latest quarter, as operating expenses more than doubled and revenue linked to the PC market was cut in half on weaker demand.

The Santa Clara, Calif.-based chip maker said net income for the fourth-quarter of 2022 fell to $21 million, or 1 cents a share, compared with $974 million, or 80 cents a share, for the same period a year earlier.

Stripping out one-time items, the company's earnings per share came in at 69 cents. Analysts polled by FactSet had forecast adjusted earnings per share of 67 cents, according to FactSet.

The company's operating expenses jumped to $2.56 billion from $1.22 billion a year earlier, AMD said.

Revenue increased to $5.56 billion from $4.83 billion a year earlier, with growth across its embedded and data center segments being partially offset by lower client and gaming segment revenue. Analysts polled by FactSet had forecast revenue of $5.51 billion. Early in November, the company said it expected around $5.5 billion of revenue in the quarter.

The company saw revenue for its client segment drop 51% to $903 million due to lower processor shipments from a weak PC market, it said. Revenue coming from its gaming segment declined 7% to $1.6 billion, it added.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

January 31, 2023 16:47 ET (21:47 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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