Advanced Micro Devices reported that income in its first quarter was $5.35 billion, down 9% from a yr earlier because the consumer PC market slowed dramatically.

However Lisa Su, CEO of AMD, mentioned in an analyst name that she believes development will resume within the second half for PC and server markets.

“My view is enterprise will enhance as we go into the second half and I see small indicators that issues are enhancing in China,” Su mentioned. “We consider the consumer market is enhancing. Q1 was the underside.”

She thinks consumer revenues are prone to be higher within the second half of the yr. In after-hours buying and selling, AMD’s inventory fell 5% to $84.93 a share.

Analysts anticipated earnings per share to come back in at 56 cents, and AMD beat these estimates with Q1 EPS of 60 cents. The $5.35 billion in quarterly income was additionally higher than the $5.3 billion anticipated income.

AMD additionally mentioned it expects about $5.3 billion in gross sales within the present quarter second quarter, in comparison with expectations of $5.48 billion. The online loss for Q1 was $139 million, or a lack of 9 cents per share, versus internet revenue of $786 million, or 56 cents a share, throughout the identical quarter a yr in the past.

Amongst AMD’s divisions, the largest decline was in AMD’s consumer group, which incorporates PC processor gross sales. AMD reported $739 million in gross sales for the consumer group, down 65% from $2.1 billion in gross sales a yr in the past. IDC reported that PC shipments dropped 30% in Q1.

For the information middle, AMD gross sales grew barely to $1.295 billion from $1.293 billion final yr. The embedded section, which incorporates networking chips, grew from $595 million final yr to $1.56 billion, partially due extra gross sales from the corporate’s buy of Xilinx.

AMD’s gaming section, which incorporates graphics processors for PCs in addition to chips for consoles just like the Ps 5 and Xbox Sequence X/S, reported $1.76 billion in gross sales, down barely from final yr’s $1.88 billion mark. Final week, AMD’s rival Intel reported that total gross sales dropped 36%.

Su mentioned she believes demand is powerful for AI processing chips and that AMD is properly positioned with its structure. She believes generative AI will drive the market ahead, amongst different issues. Su mentioned that she doesn’t consider AMD misplaced share within the server chip market. Within the second half, AMD will launch new server chips code-named Genoa and Bergamo.