AMD just had the best quarter in history

What happened now? AMD’s ongoing success shows no signs of slowing down. Team Red just released its third quarter income statement, another record that beats expectations. It was not only the company’s most successful third quarter, but AMD’s best quarter ever.

AMD generated Revenue for the three months ended September was $ 4.3 billion, operating income was $ 948 million, net income was $ 923 million, and diluted earnings per share were $ 0.75, which beat analysts’ expectations of $ 4.11 billion in revenue and net income of 66 cents per share.

Revenue was up 54% year-over-year, making this the best quarter in the company’s history and marking another quarterly report showing growth – a trend that dates back to the second quarter of 2020.

“For the fifth consecutive quarter, we saw revenue growth of over 50% year-on-year, with each of our businesses growing significantly year-on-year and data center sales more than doubling.” said AMD CEO Lisa Su. “Shipments of 3rd generation Epyc processors have grown significantly this quarter as our data center sales more than doubled from last year. In 2021, our business has accelerated significantly, growing faster than the market, thanks to our leading products and consistent execution. “

The company’s Computing & Graphics segment, which includes AMD’s desktop and laptop processor and GPU sales, generated $ 2.4 billion in revenue, up 44% year-over-year and 7% year-over-year. quarterly, while operating income rose $ 129 million to $ 513 million YoY, although higher operating expenses meant that figure was slightly lower than in the prior quarter.

Elsewhere, Enterprise, Embedded and Semi-Custom revenues rose 69% YoY to $ 1.9 billion, driven by Epyc sales and strong demand for the latest AMD-based consoles from Microsoft and Sony.

Despite Su’s confidence that the chip shortage will persist in the second half of 2022 (which is more optimistic than Intel CEO Pat Gelsinger’s forecast for 2023), AMD has improved its forecasts for the fourth quarter and year. A record $ 4.5 billion is expected to reach a record $ 4.5 billion in Q4 2021, up 41% year-over-year, while a 65% growth is projected in 2021 from $ 9.8 billion dollars in 2020. Intel, by contrast, is concerned that its sales may slow in the fourth quarter, even as Alder Lake is about to fall.

“Our supply chain team performed very well in a challenging environment, providing additional supplies throughout the year, supporting our significant revenue growth,” added Su. “We are also investing heavily in additional capacity to support our long-term growth.”

Su also said AMD is close to completing its acquisition of programmable gate array (FPGA) manufacturer Xilinx by the end of this year as it is making significant progress in securing the necessary regulatory approvals.

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