In a nutshell: AMD has announced its Q4 2019 and full year 2019 earnings results, and it’s mostly good news. The firm broke quarterly and yearly revenue records, but its stock fell around 4 percent on the back of a softer outlook for Q1 2020. CEO Dr. Lisa Su also revealed that the Navi Refresh and RDNA 2 would both arrive this year.
AMD brought in a record $2.13 billion of revenue in the fourth quarter, marking a 50 percent increase compared to Q3 2019. It was also a record-breaking year for the company, with $6.73 billion of revenue generated—a 4 percent jump compared to a year earlier.
"2019 marked a significant milestone in our multi-year journey as we successfully launched and ramped the strongest product portfolio in our 50-year history,” said Su.
In the company’s Computing and Graphics arm, Ryzen and Radeon products helped revenue jump 69 percent YoY to $4.7 billion. Quarterly revenue was also up, by 30 percent to $1.66 billion. Su said that AMD’s 7nm products and Ryzen Mobile processors droves sales, with the company recording its highest CPU sales in six years. Radeon RX 5000 sales, meanwhile, helped graphic unit shipments grow by a “double-digit” percentage YoY.
It wasn’t all good news. The company’s Enterprise, Embedded and Semi-Custom (EESC) segment brought in less revenue than analysts expected. While it did see increased sales of EPYC processors, there were “lower semi-custom sales” as fewer consumers bought consoles in anticipation for the next-gen machines’ arrival later this year. The $465 million of revenue brought in by the EESC arm during Q4 was down 11 percent QoQ, while the $2 billion it generated across 2019 was down 14 percent from a year earlier.
Additionally, the Q1 2020 outlook of $1.8 billion, while up 48 percent YoY, was softer than expected, contributing to the drop in the share price.
Su also confirmed that AMD will introduce the 7nm Navi refresh and its next-gen RDNA architecture this year. "In 2019 we launched our new architecture in GPUs, it’s the RDNA architecture, and that was [in] the Navi-based products. You should expect those will be refreshed in 2020 and we'll have our new next-generation RDNA architecture that will be part of our 2020 lineup," said the CEO.
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