AMD reports another record quarter as revenue jumps 93% to $3.45 billion

midian182

Posts: 6,794   +61
Staff member
In brief: Consumers are doubtlessly sick of hearing the words "chip shortage," but for AMD, the unprecedented demand contributed to a record-breaking quarter. During the first three months of 2021, team red saw its revenue increase 93% year over year (YoY) to $3.45 billion.

We know the difficulty in buying graphics cards and, to a lesser extent, CPUs right now, especially at something close to their MSRP, but AMD is pumping out huge numbers of chips—just not enough to meet demand—and that's boosting the company's bottom line.

AMD's net income was up 243% YoY to $555 million. That would have been another record were it not for a one-off tax benefit in the previous quarter that increased Q4 2020 net income to $1.7 billion.

The Computing and Graphics segment, comprising consumer GPUs and CPUs, generated $2.1 billion in revenue, up 46% YoY. We recently saw how the firm's Ryzen processors are dominating Amazon's top-selling CPUs chart, despite Intel discounting many of its chips.

AMD said it was also a record-breaking quarter for its Ryzen CPUs in terms of revenue and average selling prices. The company keeps eroding Intel's share of the processor market; AMD CPUs are now found in close to 30% of Steam survey participants' PCs.

CEO Lisa Su spoke about the mobile division: "We delivered our sixth straight quarter of record mobile processor revenue based on sustained demand for Ryzen 4000 series processors and the launch of our new Ryzen 5000 series processors."

Su said that Radeon 6000 GPU sales had doubled compared to the previous quarter, and, in what sounds like good news for gamers, claimed GPU supply would improve in the next quarter. She was also asked what effect, if any, crypto mining had on AMD's profit surge:

"You asked about crypto. We do not—we have negligible crypto in here. So this is really the foundational business, really, the new products and just seeing the customers adopt and ramp quickly."

It was a massive quarter for the Enterprise, Embedded, and Semi-Custom (EESC) group, a result of the Xbox Series X/S and PS5 launches, as well EPYC Milan's arrival. It made $1.35 billion in revenue, up 286% YoY. Operating income was at $277 million, whereas the segment lost money in Q1 2020.

AMD expects this success to continue throughout the rest of the year. It predicts $3.6 billion in revenue for Q2, up 86% YoY, and has increased its previous projection of 37% annual growth to 50%.

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Irata

Posts: 1,448   +2,335
Those are some impressive results. Kudos to AMD.

One thing: semi custom revenue was down this quarter over last (single digit percentage) while Epyc sales were up considerably.

Did you miss doing an article on Intel‘s recent earnings call, btw ? It would be interesting to compare both.
 

NeoMorpheus

Posts: 522   +993
Did you miss doing an article on Intel‘s
We dont care for the evil walking dead.. :)

3mboejkf2sv61.gif
 

mbrowne5061

Posts: 1,840   +1,068
"You asked about crypto. We do not—we have negligible crypto in here. So this is really the foundational business, really, the new products and just seeing the customers adopt and ramp quickly."
Sounds to me like she misunderstood the concerns, and thought people were asking whether AMD held Crypto (like Tesla) or whether AMD saw increased demand for their GPUs due to crypto mining (like nVidia).
 

Irata

Posts: 1,448   +2,335
Sounds to me like she misunderstood the concerns, and thought people were asking whether AMD held Crypto (like Tesla) or whether AMD saw increased demand for their GPUs due to crypto mining (like nVidia).
Given the problems crypto mining caused AMD back in the Polaris days, I would bet she understood perfectly well.

And judging by the crypto farm pictures that circulate, it does not seem RDNA2 based cards are even remotely popular with the mining operators.

It‘s still a danger for them in case a crypto crash floods the market with used cards, but imo they will be much less exposed than nVidia this time around.
 

Gimp65

Posts: 24   +34
Those are some impressive results. Kudos to AMD.

One thing: semi custom revenue was down this quarter over last (single digit percentage) while Epyc sales were up considerably.

Did you miss doing an article on Intel‘s recent earnings call, btw ? It would be interesting to compare both.
yeah intel did not do well this quarter, good for the market, good for consumers.
 

poohbear

Posts: 630   +548
AMD is gonna make massive growth over the next 5 years.
you might've missed the boat. It was a $2 stock in 2016. It's a $85 stock today. That massive growth is already priced in. If Nvidia's ARM CPU for enterprise takes off...then that's where the massive growth will be.
 

Irata

Posts: 1,448   +2,335
you might've missed the boat. It was a $2 stock in 2016. It's a $85 stock today. That massive growth is already priced in. If Nvidia's ARM CPU for enterprise takes off...then that's where the massive growth will be.
Stock wise absolutely. Back then at $2 per share AMD was close to bankruptcy with no proof they would be able to deliver a competitive product or be able to execute on their plans.

You could still get in for good prices ( around $10/share) after they had started delivering.

Still, looking at their market share, there is still a lot of room for growth for the company but I don‘t expect their shares to be worth multiples of what they are now.
 

JamesBlond

Posts: 85   +56
Given the problems crypto mining caused AMD back in the Polaris days, I would bet she understood perfectly well.

And judging by the crypto farm pictures that circulate, it does not seem RDNA2 based cards are even remotely popular with the mining operators.

It‘s still a danger for them in case a crypto crash floods the market with used cards, but imo they will be much less exposed than nVidia this time around.

Good thing the new mining ASICs for ethereum will stop GPU Farms from buying GPU's, more than likly sell them now.