AMD has reported its fourth quarter and full year earnings. Should you’re an investor, the numbers make for glad studying because of AMD’s finest ever revenues. It continues to get pleasure from 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 autumn 2020 to $1.12 billion in This autumn 2021, a 77 % enhance!
For PC avid gamers, 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 discuss of how troublesome issues are for chip makers, the large asking costs of GPUs are clearly serving to to fatten up the coffers at AMD. This autumn 2021 working earnings was $566 million in comparison with $513 million in Q3 2021 and $420 million in This autumn 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 vital to notice that these outcomes largely exclude the late 2021 market altering launch of Intel’s 12th Generation CPU vary. Will probably be fascinating 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 can 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 sluggish momentum on the Computing and Graphics aspect.
There’s loads of quick time period development potential on the Enterprise, Embedded and Semi-Customized aspect although. Aside from ongoing console demand, AMD’s very aggressive enterprise merchandise proceed to chip away at Intel’s market share.
Ideas and recommendation
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AMD continues to promote nearly each GPU it may make. Sky-high costs are little doubt massive contributors to AMD’s report of a gross margin of fifty %. That is nice for shareholders, however does little for disillusioned avid gamers searching for a GPU cut price. We are able to by no means get used to the concept 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 corporations, 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 robust ongoing demand for GPUs, console chips and enterprise merchandise, it is likely to be untimely to jot down off AMD simply but. Dr Lisa Su might be getting a pleasant bonus this yr.