AMD has reported its fourth quarter and full year earnings. When you’re an investor, the numbers make for blissful studying because of AMD’s greatest ever revenues. It continues to take pleasure in development throughout all of its divisions.
The corporate reported a document $4.8 billion fourth quarter income, up 49 % from the identical quarter in 2020. Non GAAP web earnings rose from $636 million in This fall 2020 to $1.12 billion in This fall 2021, a 77 % enhance!
For PC players, probably the most related outcomes are these from AMD’s Computing and Graphics division. Right here, AMD reported a income of $2.6 billion which is a 32 % enhance yr on yr and an 8 % enhance quarter on quarter. For all of the speak of how tough issues are for chip makers, the large asking costs of GPUs are clearly serving to to fatten up the coffers at AMD. This fall 2021 working earnings was $566 million in comparison with $513 million in Q3 2021 and $420 million in This fall 2020.
AMD’s Enterprise, Embedded and Semi-Customized division generated $2.2 billion in income for the quarter. That’s a shocking 75 % year-over-year enhance because of sturdy EPYC gross sales and relentless demand for PlayStation and Xbox chips. Not unexpectedly, AMD expects console demand to proceed for the foreseeable future.
It is necessary to notice that these outcomes principally exclude the late 2021 market altering launch of Intel’s 12th Generation CPU vary. Will probably be attention-grabbing to see AMD’s Q1 2022 outcomes given the strength of Intel’s non-K CPU lineup. There’s additionally the looming launch of Intel’s Arc Alchemist GPU vary which is able to naturally take away a few of AMD’s (and Nvidia’s) GPU revenues, although that may solely grow to be obvious later in 2022. Zen 4 and RDNA3 GPUs are nonetheless many months away from launch which can additionally gradual momentum on the Computing and Graphics facet.
There’s a number of brief time period development potential on the Enterprise, Embedded and Semi-Customized facet although. Aside from ongoing console demand, AMD’s very aggressive enterprise merchandise proceed to chip away at Intel’s market share.
Ideas and recommendation
How to buy a graphics card: recommendations on shopping for a graphics card within the barren silicon panorama that’s 2021
AMD continues to promote nearly each GPU it could possibly make. Sky-high costs are little doubt huge contributors to AMD’s report of a gross margin of fifty %. That is nice for shareholders, however does little for disillusioned players searching for a GPU cut price. We are able to by no means get used to the thought of spending $300 on a card just like the Radeon RX 6500 XT, an ostensibly entry degree GPU.
Whereas AMD’s manufacturing prices could also be greater like these of most semiconductor firms, it is hardly damaging the underside line. We are able to solely hope that common promoting costs will fall as provide chain woes ease. It is early days, however there are signs that things are improving.
A few weeks in the past, Intel CEO Pat Gelsinger stated that AMD was in the rear-view mirror. With outcomes like these and powerful ongoing demand for GPUs, console chips and enterprise merchandise, it is likely to be untimely to write down off AMD simply but. Dr Lisa Su might be getting a pleasant bonus this yr.
