Continuing our Q2 earnings protection this month, AMD is subsequent out the gate in reporting their earnings. And, has been the story now for a lot of the final 12 months, AMD is having fun with explosive income progress throughout the corporate. CPU, GPU, and semi-custom gross sales are all up, pushing the boundaries of what AMD can do amidst the present chip crunch, and pushing the corporate to new ranges of profitability within the course of.
For the second quarter of 2021, AMD reported $3.85B in income, making for yet one more large leap over a year-ago quarter for AMD, when the corporate made simply $1.93B in a then-record quarter. Now, half-way via 2021, AMD’s monetary trajectory is all about setting (and beating) information for the corporate, as evidenced by the 99% leap in year-over-year income – falling simply thousands and thousands wanting outright doubling their income.
AMD’s massive run-up in income can be mirrored within the firm’s different metrics; together with that income AMD’s web earnings has grown by 352% year-over-year, now reaching $710M. And if not for an uncommon, one-off tax profit for AMD’s This fall’2020, this might have been AMD’s most worthwhile quarter ever – and certainly is on a non-GAAP foundation. Meanwhile, as you would possibly count on from such excessive web earnings figures, AMD’s gross margin has risen even additional and now sits at 48%, up four share factors from the year-ago quarter and a pair of factors from final quarter.
| AMD Q2 2021 Financial Results (GAAP) | |||||||
| Q2’2021 | Q2’2020 | Q1’2021 | Y/Y | Q/Q | |||
| Revenue | $3.85B | $1.93B | $3.45B | +99% | +12% | ||
| Gross Margin | 48% | 44% | 46% | +4pp | +2pp | ||
| Operating Income | $831M | $173M | $662M | +380% | +26% | ||
| Net Income | $710M | $157M | $555M | +352% | +28% | ||
| Earnings Per Share | $0.58 | $0.13 | $0.45 | +346% | +29% | ||
Breaking down AMD’s outcomes by phase, we begin with Computing and Graphics, which encompasses their desktop and pocket book CPU gross sales, in addition to their GPU gross sales. That division booked $2.25B in income for the quarter, $883M (65%) greater than Q2 2020. Accordingly, the phase’s working earnings is (as soon as extra) up considerably as effectively, going from $200M a 12 months in the past to $526M this 12 months.
As at all times, AMD doesn’t present an in depth breakout of data from this phase, however they’ve supplied some selective data on income and common promoting costs (ASPs). Overall, consumer CPU gross sales have remained sturdy; consumer CPU ASPs are up on each a quarterly and yearly foundation, indicating that AMD has been promoting a bigger share of high-end (high-margin) elements. According to AMD that is the case for each desktop and laptop computer gross sales, and making this the fifth straight quarter of income share positive factors.
Meanwhile the corporate is reporting equally excellent news from their GPU enterprise. As with CPUs, ASPs for AMD’s GPU enterprise as up on each a yearly and quarterly foundation. According to the corporate that is being pushed by demand for high-end Radeon 6000 video playing cards, in addition to AMD Instinct (information middle) gross sales. AMD started preliminary shipments of their first CDNA 2 architecture-based Instinct accelerators in Q2, opening the spigot there for information middle GPU income going into Q3.
| AMD Q2 2021 Reporting Segments | |||||
| Q2’2021 | Q2’2020 | Q1’2021 | |||
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Computing and Graphics
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| Revenue | $2250M | $1367M | $2100M | ||
| Operating Income | $526M | $200M | $485M | ||
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Enterprise, Embedded and Semi-Custom
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| Revenue | $1600M | $565M | $1345M | ||
| Operating Income | $398M | $33M | $277M | ||
Moving on, AMD’s Enterprise, Embedded, and Semi-Custom phase has as soon as once more skilled 1 / 4 of fast progress, due to the success of AMD’s EPYC processors and demand for the ninth technology consoles. This phase of the corporate…
