Advanced Micro Devices Inc. is flying excessive at present, its refill greater than 10% in after-hours buying and selling after the veteran chipmaker reported second-quarter outcomes that comfortably beat expectations and posted sturdy steerage for the following quarter.
The chipmaker reported a revenue earlier than sure prices corresponding to inventory compensation of 18 cents per share on income of $1.93 billion. Wall Avenue had forecast earnings of 16 cents per share on income of $1.86 billion.
“AMD had a strong quarter in income and revenue, with 26% development and a 3% gross margin enchancment,” mentioned analyst Patrick Moorhead of Moor Insights & Technique. “Like we noticed in Q1, AMD set some income data in Q2.”
The corporate mentioned its gross sales grew 26% from a yr in the past on sturdy demand for its Ryzen private pc chips and its Epyc server processors. Income for each chips doubled from a yr in the past, AMD Chief Government Lisa Su (pictured) mentioned in a convention name with analysts.
AMD’s Shopper Computing Group, which incorporates the Ryzen chips, reported income of $1.37 billion, up 45% from final yr.
“AMD set data in CCG with the best shopper processor income in 12 years, doubling Ryzen pocket book income,” mentioned Moorhead. “In actual fact, this was the best pocket book revenues ever, pushed by elevated competitiveness, significantly with its Ryzen Cell 4000 platform.”
AMD additionally posted a powerful outlook for the present quarter. It mentioned it’s anticipating third-quarter income of $2.55 billion, effectively forward of Wall Avenue’s $2.32 billion forecast.
One purpose for the sturdy outlook is that AMD is anticipating the PC market to develop much more this yr, Su mentioned within the name. The PC market has already benefited this yr from extra gross sales as a consequence of the coronavirus pandemic, and the shift to working at dwelling.
Su mentioned she thinks AMD’s embedded and semicustom chip enterprise can even develop within the second half of the yr with the launch of latest online game consoles from Microsoft Corp. and Sony Corp. that use AMD parts.
“We count on sturdy second-half semicustom development as we learn manufacturing to help the vacation launches of the brand new PlayStation 5, and Xbox Sequence X consoles,” Su mentioned. “We do imagine that the market is slightly bit higher than we thought 90 days in the past, however we additionally imagine that our product traction is powerful, and we’re seeing that with our buyer demand, so these are the explanations for the steerage.”
AMD’s outcomes come simply days after its fundamental rival within the chipmaking area, Intel Corp., announced a six month delay with its seven-nanometer product roadmap. Intel has additionally made some big management changes, and that might give AMD a chance to take much more of its rival’s market share.
AMD additionally competes within the information middle server market with its Epyc chips, and it’s making some sturdy positive aspects there too. In current months it has landed various deals with hyperscale cloud corporations corresponding to Amazon Internet Providers Inc. and IBM Corp., whereas server makers corresponding to Dell Applied sciences Inc. and Hewlett-Packard Enterprise Co. have announced new systems based mostly on the Epyc chips.
“I used to be happy to see that Epyc server CPUs set data because it doubled income yr on yr,” Moorhead mentioned. “I attribute most of this Epyc development to cloud service, SaaS and HPC gamers embracing the platform increasingly more. It doubtless took share within the non-IoT server area.”
Photograph: AMD Global/Flickr
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