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AMD's earnings report: they're selling a lot of something
https://www.anandtech.com/show/16455/amd-reports-q4fy-2020-earnings-record-revenues-repeat
Some people seem to think that the shortage of AMD CPUs and GPUs at retail is because they aren't selling very many products. Their earnings statement certainly contradicts that.
In Q4 2019, AMD had earnings of $2.127 billion, which was then the highest in the history of the company. In Q3 2020, it was $2.801 billion. In Q4 2020, it was $3.244 billion, a 53% increase over what a year earlier had been a new record for them. Earnings in Q1 of a year are nearly always down seasonally, but AMD is projecting $3.2 billion. For comparison, that is 79% more than Q1 2020 and 152% more than Q1 2019.
So AMD is obviously selling a whole lot of something. They break it down into two segments, which gives a little bit of a clue as to what. For "computing and graphics", which includes their consumer desktop and laptop products, revenue is only up 18% as compared to a year ago. For enterprise, embedded, and semi-custom, revenue is up 176% as compared to a year ago. The latter includes game consoles, but I don't think that's what's driving it. AMD is now selling a lot more EPYC server parts than before. With the coming launch of EPYC Milan, you expect that to continue to grow. And expect AMD to continue to prioritize server CPUs over desktop, as server parts have higher margins.
Some people seem to think that the shortage of AMD CPUs and GPUs at retail is because they aren't selling very many products. Their earnings statement certainly contradicts that.
In Q4 2019, AMD had earnings of $2.127 billion, which was then the highest in the history of the company. In Q3 2020, it was $2.801 billion. In Q4 2020, it was $3.244 billion, a 53% increase over what a year earlier had been a new record for them. Earnings in Q1 of a year are nearly always down seasonally, but AMD is projecting $3.2 billion. For comparison, that is 79% more than Q1 2020 and 152% more than Q1 2019.
So AMD is obviously selling a whole lot of something. They break it down into two segments, which gives a little bit of a clue as to what. For "computing and graphics", which includes their consumer desktop and laptop products, revenue is only up 18% as compared to a year ago. For enterprise, embedded, and semi-custom, revenue is up 176% as compared to a year ago. The latter includes game consoles, but I don't think that's what's driving it. AMD is now selling a lot more EPYC server parts than before. With the coming launch of EPYC Milan, you expect that to continue to grow. And expect AMD to continue to prioritize server CPUs over desktop, as server parts have higher margins.
