AMD has reported for the second quarter of the 2020 fiscal year. And this quarter became a record one for the chip maker. AMD’s success stands in sharp contrast to Intel’s failures, which released its financials the day before. We chose the main thing from the report.
For the three-month period from April to June, AMD’s revenue was $ 1.932 billion, which is 26% more than in the same period a year ago, and 8% more than in the first quarter of 2020. Operating income rose from $ 59 million to $ 173 million, or 293%. Net profit actually increased by 349%, reaching $ 157 million.
Gross margin in annual terms increased by 3 percentage points, to 44%. On the other hand, in the first quarter, it was even higher at 46%. A non-GAAP calculation shows that operating income increased from $ 111 million to $ 233 million and net income increased from $ 92 million to $ 216 million.
Consumer processors were the main contributors to the record, with sales peaking in 12 years. Computing and Graphics’ most profitable division, responsible for CPU and GPU sales for personal computers, increased revenue by 45% to $ 1.37 billion, while operating income increased from $ 22 million to $ 200 million. Ryzen notebook processor sales doubled to the end 30+ new laptop models with Ryzen 4000 (Renoir) APUs will hit the market this year, in addition to the 50+ already released. Mobile accounts for about 65% of total consumer CPU shipments and is gaining ground especially with Intel’s upcoming 11th Gen (Tiger Lake) mobile chips. Ryzen desktop sales are up YoY, but declined QoQ … At the same time, the average selling price increased due to consumer interest in more expensive models. At the same time, discrete GPU sales and average price declined, driven by a shift in demand towards mobile APUs with integrated graphics. Another major achievement highlighted in the report is the doubling of sales of EPYC server chips. Intel’s server division posted a record $ 7.1 billion in revenue last quarter, so this is a big achievement. AMD claims to have achieved the goal and now its share in the server market segment is characterized by a double-digit number. That is, it is more than 10%. The Enterprise, Embedded and Semi-Custom division, engaged in the supply of semi-custom chips, enterprise and embedded solutions, continues to steadily lose revenue due to the end of the life cycle of the PlayStation 4 and Xbox One. Between April and June, it brought the company $ 565 million and $ 33 million in operating profit. SoCs for the next generation of Xbox Series X and PlayStation 5 will begin mass production this quarter, so revenues can skyrocket by the end of the year. AMD has reaffirmed plans to release the following new products before the end of the year: ) and the 3rd Gen Nordic EPYC (Milan) on Zen 3, and the new 2nd Gen RDNA gaming graphics cards (Navi 2X), along with the professional Radeon Instinct CDNA GPUs. As of the end of the quarter, AMD was $ 1.78 billion in cash and cash equivalents versus $ 1.3 billion a year ago. AMD raised its forecast and now expects revenue of $ 2.55 billion ± $ 100 million on 44% gross margin. OTC trading rose sharply by 11.36% to $ 74.6, so the gap from Intel is likely to grow in the future. We will remind, last week AMD for the first time in 15 years overtook Intel in the share price, becoming the eighth largest chip maker in the world.