In the second quarter AMD was able to perform better than analysts ‘ expectations, as they predicted the receipt of revenue of $1.86 billion, but the actual value reached $1.93 billion, the Company expects stable demand for client and server processors in the second half, and expects to further strengthen its market position.
Revenue in the second quarter increased by 26% in the annual comparison, AMD tend to give thanks for this is a high demand for client and server processors. The proceeds increased more than twice compared to the same period last year. Of course, in the client segment, the odds were in favor of mobile processors, a record was revenue and the number of copies sold, but sales of desktop processors compared with the first quarter decreased. On the other hand, their average price rose, which contributed to total revenue growth in the desktop segment. Revenues from sales of mobile processors grew by more than two times in annual comparison.
Directly revenues from sales of mobile processors family Ryzen 4000 grew at a record pace for AMD. In the second half of the year, the company also looks optimistic. If the spring she had expected the PC market expects the recession triggered by the pandemic and economic crisis, now expects demand growth in the PC segment. The same dynamics will be observed in the server segment. Of course, the PC market will focus on processors for laptops, although towards the end of the year will be released new desktop processors with Zen architecture 3. Supply of server processors EPYC family of Milan with architecture Zen 3 will also begin this year.
The server components provide AMD twenty percent of the total revenue
If the direction of computing products and graphics brought AMD in the second quarter of $1,367 billion in revenue, 45% higher than the same period of the previous year, server components and “polusekretnye” products in the annual comparison showed a revenue decline by 4% to $565 million Affected by the decline in interest in game consoles, the outgoing generation, although EPYC server processors in the second quarter reached a record volume of sales. Set a year and a half ago, the goal was achieved – on the server market AMD now holds more than 10 %.
As explained by the CEO of the company Lisa su (Lisa Su), in development are server processors EPYC fourth generation architecture Zen 4, they will be produced by the 5-nm technology.
Another important achievement in the server direction was the increase in the share of earnings derived from the implementation of the components of this class. This figure reached 20 %, mainly due to the CPU EPYC.
Announcement graphics RDNA 2 is scheduled for the fourth quarter
In the segment of graphics solutions AMD revenues in the annual comparison has decreased because the increase in sales of mobile GPU to have double-digit percent could not offset the decline in demand for desktop products. In the mobile segment sales was driven by new solutions with the architecture of the RDNA, including the Radeon RX series of 5000M. In the server segment, revenues from sales of graphics processors has decreased, but it may increase in the second half after the release of compute accelerators with the architecture of the CDNA.
From the comments Lisa su becomes clear that the announcement of graphical solutions with the architecture of the RDNA 2, including the flagship “Big Navi”, scheduled for the fourth quarter of this year. Planned a complete upgrade of the range graphics cards in all price segments, but don’t expect it to happen at once. Revenue growth after the new graphics solutions will occur in the fourth quarter and next year.
Sales client processors Ryzen brought AMD record revenues
Revenues client AMD in the second quarter has reached 12-year high. Isolation of consumers contributed to the growth of demand for laptops, but the head of AMD tend to assume that a new record for revenue is a natural result of the increase in the market share of the company for the past 11 quarters.
In the near future, AMD intends to focus on promoting its mobile processors where its products have historically not been widely represented in commercial and gaming segments. Now the market has more than 50 models of laptops on the basis of processors Ryzen 4000 (Renoir), in the near future the range will be replenished with more than 30 models of laptops.
The second half of AMD’s looking with confidence
Profit margins of AMD in the second quarter had a bit of sacrifice, since the start of the supply of components for the new gaming consoles have cut it in sequential, compared with 46% to 44%, but in yearly comparison it was still three percentage points higher. In the third quarter, the company expects to maintain margins at the current level. Revenue must be placed in the range of $2.45 up to $2.65 billion At year-end forecast for revenue growth increased from 25% to 32%, the profit rate should increase to 45 %.
As explained Lisa su, is now almost no doubt that in the second half of the company’s financial performance will improve, supported by high demand for the products of the current generation and the new, related to the architectures of Zen 3 and 2 RDNA. The upward trend in revenues will be long-term, is convinced the General Director of the company.
After-hours trading, the stock AMD rose more than 10 % as investors were impressed by not only the current success of the company and rare in this troubled time favorable prognosis for the second half.