AMD Posts 70% Year-Over-Year Revenue Increase as Sales of EPYC CPUs Skyrocket
AMD reported its best quarterly revenue to date on Tuesday with revenue of $6.6 billion for the second quarter of 2022. Additionally, all AMD products, including CPUs and GPUs, increased in Q2 2022. Nevertheless, product shipments for client PCs began to show weakness due to rising inflation and a difficult macroeconomic environment.
AMD’s revenue in Q2 2022 grew 70% year over year due to the company’s product success and the addition of Pensando and Xilinx products to AMD’s family. The company posted a gross profit of 46%, net income of $447 million, and earnings per share of $0.27. AMD’s net profit fell 37% year-on-year, mainly due to the amortization of intangible assets related to the Xilinx acquisition, the chip designer explained.
AMD’s Client Computing Segment (Includes Desktop and Notebook CPUs and Chipsets) Reported Second Quarter Revenue of $2,152 Billion (+25% YoY), Operating Profit of $676 Million dollar (year-over-year growth) and remained the company’s primary source of revenue. Additionally, chip makers noted strong mobile Ryzen CPU sales and higher average selling prices (compared to the same period last year), boosting earnings in the client computing segment.
Sales of data center products (CPUs, GPUs, Xilinx FPGAs, and Pensando DPUs) surged 83% to $1,486 billion compared to Q2 2021. AMD’s data center business unit has made significant gains with the addition of FPGAs and GPUs to its lineup. Still, AMD’s EPYC processor shipments increased as the company continued to win designs from server makers.
AMD’s gaming business, which includes client GPUs and console systems-on-a-chip, showed mixed results in the quarter. Meanwhile, AMD’s gaming hardware revenue reached $1.655 trillion, up 32% year-over-year. On the other hand, however, the business unit’s operating profit increased by only 7% to $187 million. AMD said 2021 was a strong year, with sluggish demand for consumer graphics cards by gamers and miners, weaker demand for client PCs, and lower graphics card prices resulting in mixed results.
AMD’s embedded product shipments (including embedded solutions from both AMD and Xilinx) totaled $1.257 trillion, undermining the base effect as AMD’s embedded product shipments have not been exceptionally high recently. A whopping 2,228% year-on-year increase, largely due to Year.
AMD expects Q3 2022 revenue to increase to $6.7 billion ± $200 million. This is 55% higher than Q3 2021. The company expects revenue growth to come primarily from Xilinx’s expensive data center and embedded products. The company confirmed plans to release its Ryzen 7000 series ‘Raphael’ processors this fall and Radeon RX 7000 series GPUs based on the RDNA 3 architecture later this year, but these launches will boost client computing and gaming businesses. . AMD, on the other hand, should maintain its revenue guidance of $26.3 billion ± $300 million for 2022, up 60% from 2021.
