AMD Bathes In Dollars As It Posts 99% Revenue Growth In Second Quarter 2022 - rodgersalsoned

AMD Chief Dr. Lisa Su. Image: Lisa Su/Twitter

Chip designer High Micro Devices, Inc (AMD) reported its earnings results for the s quarter of 2021 earlier today. The company attained $3.9 billion in revenue in the quarter, its highest to date as it marked an dumfounding 99% year-over-twelvemonth growth in Q2, as IT inches towards a pet gross margin of 50%. After accounting for the cost of sales, AMD earned $1.8 one million million in profit, notice a strong 48% gross leeway, which is dormie aside 4% yr over year and 2% higher than the 46% that information technology posted at the last of the first quarter of 2021.

Strong Datacenter Gross revenue Free rein Crucial Role In Dynamic AMD To Record Receipts In Q2 2021

As the second quarter came to an destruction, AMD continued its strong growth trend across every last operative segments. The company classifies its sales across two segments, personal computing and enterprise and enclosed products. Both managed to importantly pass the levels they stood at the end of the previous quarter and the yr-ago quarter.

At the remainder of this class's first quarter, AMD had pulled in $3.4 billion in revenue, with personal calculation and enterprise and embedded delivery in $2.1 billion ad $1.3 billion receipts, respectively. At the end of the second quarter, totality revenue grew by 12% sequentially, as the two segments raked in $2.2 and $1.5 billion, respectively. Sequential growth for the duo stood at 7% and 19%, highlight the important role played away enterprise and embedded segment.

AMD attributes the strong personal computing gross growth to fertile sales of the Ryzen 6000 central processing unit (CPU) card and higher average selling prices (ASPs) for its processors and GPUs. According to the company, strong notebook and desktop CPU gross revenue on with a ontogenesis in high-priced, higher-end GPUs drove the personal computation sector; a gene that also explains AMD's strong gross margins at the end of Q2 2021.

Gross margins, which measure the role played by the cost of product gross revenue in a company's lucrativeness, stood at 48%, up by 4% annually and 2% over its previous high value of 46% in Q1 2021 and Q1 2020.

A picture worth a thou words; AMD posted astounding increment crossways all prosody in its Q2 2021. Image: Sophisticated Micro Devices, Inc Earnings display for the second quarter of 2021

For AMD, the second quarter as wel proven to personify a strong one for its data center products. Marketed equally EPYC, these processors are used by waiter and other companies, and according to AMD, Q2 marked a "5th aligned twenty-five percent of record server processor revenue, including demand for 2nd and 3rd Gen EPYC processors."

The enterprise segment also includes revenue from sales of products AMD classifies as 'semi-custom, which refers to the Si powering gaming consoles from Microsoft and Sony Corporation. Console revenue also remained strong in Q2, with AMD explaining that demand grew both annually and consecutive. The strength of the console cycle was indicated by the segment's operating income, which grew by a astonishing 1,106% year-over-year and stood at $398 million following the launch of the PlayStation 5 and Xbox Series X.

AMD's inventory and accounts receivables also grew during the draw and quarter, highlighting the effects of the current crisp shortage and the strong taxation growth. Another crucial bumper metric during Q2 was its free immediate payment flow, which stood at a record of $888 million later on $64 million of capital outlay. The company also repurchased $256 million of common hackneyed in the second quarter.

For the current quarter or Q3, AMD expects its profit margin to stay flat at 48%. Notwithstandin, it as wel expects the latest quarter to post another record gross. The chip designer's earnings guidance expects $4.1 billion in revenue for this quarter and overall revenue development of 60% away the end of the fiscal year. Its shares flip-flopped in after-hours trading aft the earnings release and are slightly up at the time of publishing.

Source: https://wccftech.com/amd-bathes-in-dollars-as-it-posts-99-revenue-growth-in-second-quarter-2021/

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