AMD Reports High Quarterly Profit on New EPYC and Ryzen Sales
Advanced Micro Devices Inc. reported high earnings on strong sales of the chipmaker's promising new products, which start to help the company get more market share.
Second-quarter net income was $116 million, or 11 cents a share, compared with a loss a year earlier. It was the company's highest quarterly net income in seven years, AMD said in a statement Wednesday.
Under Chief Executive Officer Lisa Su, AMD has rolled out new chip designs it says can win back customers.
Third-quarter revenue will be about $1.7 billion, plus or minus $50 million, the Santa Clara, California-based company said.
"We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years," said Dr. Lisa Su, AMD president and CEO. "Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth."
AMD said sales in its graphics and computing business, which makes processors for servers and gaming consoles, rose 64 percent to $1.09 billion, primarily driven by its Ryzen desktop processors and Radeon graphic cards.
However, it declined 3 percent quarter-over-quarter, primarily due to lower revenue from graphic processing units (GPU) in the blockchain market.
AMD is the second-largest maker of graphics processors for add-in cards for PCs used by gamers, behind Nvidia. Demand has been boosted by sales related to cryptocurrency mining. The market has been volatile though with orders for graphics cards fluctuating with the values of the currencies.
The company also profited from its EPYC server processors gaining market share amid a largely stabilizing PC market. During the quarter, worldwide PC shipments grew for the first time in six years, according to research firm Gartner.
"Our long-term technology bets position us very well for the future." Su said in the statement. "We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth."
AMD also once again confirmed that it is working with both TSMC and fraternal fab GlobalFoundries to produce 7nm products, similar to what they've done for their current-generation 16nm/14nm products. AMD CEO Lisa Su has announced that second-generation "Rome" EPYC CPU that the company is wrapping up work on is being produced out at TSMC. This is a departure from how things have gone for AMD with the Zen 1 generation, as GlobalFoundries has produced all of AMD's Zen CPUs, both for consumer Ryzen and professional EPYC parts.