News AMD Posts Record Quarterly Revenue and Notebook Sales, Zen 3 and RDNA 2 On Track

[Admin]

AMD posted strong year-over-year financial performance for its 1Q 2020 results, but coronavirus-spurred concerns loom.

AMD Posts Record Quarterly Revenue and Notebook Sales, Zen 3 and RDNA 2 On Track : Read more

 

[refillable]

Can someone explain why gross margin is down? Are PS5/X1X chips selling really cheaply? I can only see client CPUs going up in margins with Renoir.

 

[escksu]

Can someone explain why gross margin is down? Are PS5/X1X chips selling really cheaply? I can only see client CPUs going up in margins with Renoir.

You saw the part about Intel slashing prices?? Yup. That also forces AMD to lower their prices which in turn lower gross margin.

AMD's market share for server is less than 10%. ITs not that easy to gain market share. Having a superior product alone is not enough. Most companies are still buying Intel servers today. Lots of reasons for this happening.

 

[vaughn2k]

The driver was really the capability of TSMC to go into smaller nodes from 14nm, now its 7nm. This made AMD went to top.
If this happens 6 years ago, that TSMC's manufacturing process is on par with Intel, AMD would have made more better CPUs.

 

[refillable]

You saw the part about Intel slashing prices?? Yup. That also forces AMD to lower their prices which in turn lower gross margin.

AMD's market share for server is less than 10%. ITs not that easy to gain market share. Having a superior product alone is not enough. Most companies are still buying Intel servers today. Lots of reasons for this happening.

That's quite contradictory. Semi custom/server division only accounts for less than 20% of AMD's revenue, and that is still divided across the console, embedded and server revenue. Most of the money is still coming from the client segment, and I can only see margins going up there.

 

[TerryLaze]

Is Record Quarterly Revenue a euphemism for something?
Revenue is down from last quarter so how is that a record?
Compared to the last year's 1st quarter revenue is way up but how does that translate into record,is it the best 1st quarter of any year that AMD had?That would be a record at least.

 

[mitch074]

That's quite contradictory. Semi custom/server division only accounts for less than 20% of AMD's revenue, and that is still divided across the console, embedded and server revenue. Most of the money is still coming from the client segment, and I can only see margins going up there.

Probably the increased cost of 7nm over 14/12 nm and the impact the end of crypto mining had on GPU demand.

 

[st379]

Amd cpu are great but I am reading a lot of complains about their gpu drivers.
Maybe it hurts their sale numbers.
Nvidia prices and performence are pretty close.
I chose ryzen 5 3600 with gtx 1660 ti.
I am not a beta tester.

 

[thGe17]

Can someone explain why gross margin is down? Are PS5/X1X chips selling really cheaply? I can only see client CPUs going up in margins with Renoir.

Why is gross marging going down? It has increased constantly from 1Q19 to 1Q20 from 41 % to now 46 % (over all).
Additionally the new console SoCs are currently not within balance sheets. AMD said last year, that (only a small portion) will be seen as of 2Q20 and major revenue (generated by these SoCs) will affect financial numbers starting as of 3Q20.
Currently, still declining old SoC production/requirements are reducing the Enterprise, Embedded and Semi-Custom segment. The interesting part here is, that AMD says, that "lower semi-custom sales " are "partially offset by higher EPYC processor sales", which means, that their over-all Epyc sales are still quiet small.

 

[King_V]

Is Record Quarterly Revenue a euphemism for something?
Revenue is down from last quarter so how is that a record?
Compared to the last year's 1st quarter revenue is way up but how does that translate into record,is it the best 1st quarter of any year that AMD had?That would be a record at least.

You clearly HAD to have read the first sentence, and not just the headline. So, did you mentally tune out certain parts of the first sentence just to be able to make your post?

Amidst the turbulent waters of the coronavirus pandemic, AMD posted record first-quarter 2020 revenue as the company raked in $1.79B in revenue, a 40% year-over-year increase, but 16% decline from the prior quarter.

Points that make it clear are emphasized.

 

[TerryLaze]

You clearly HAD to have read the first sentence, and not just the headline. So, did you mentally tune out certain parts of the first sentence just to be able to make your post?


Points that make it clear are emphasized.

You only made my point even clearer, it's not a record quarter it's a record first quarter of the year...clickbait to withhold that part.

 

[King_V]

You only made my point even clearer, it's not a record quarter it's a record first quarter of the year...clickbait to withhold that part.

In other words, yes, it is a record first quarter. Though, given your posting history, I'm sure you wouldn't be so insistent on a longer, detailed headline if the article were about Intel.

 

[cyrusfox]

Reading comprehension is getting worse. sad times

 

[spongiemaster]

AMD also expanded its gross margins to 46%, the twelfth straight quarter of growth (and the highest mark in eight years). That equated to profits of $222 million in the quarter, a $160 million increase from the year prior, but a $161 quarterly decline.

To put that $222 million quarterly profit in perspective, that's a 3 day weekend for Intel. $6.2 billion in profits last quarter. Three and a half times more than AMD's record revenue this quarter. Keep that in mind every time the fanboy in you wants to post how badly AMD is kicking Intel's ass. The enthusiast market is a terrible barometer to use for the entire industry.

 

[spongiemaster]

Reading comprehension is getting worse. sad times

Yea, because it is so rare to see a BS headline on the internet. Especially on this site. Never a misleading or outright factually inaccurate headline.

 

[refillable]

You only made my point even clearer, it's not a record quarter it's a record first quarter of the year...clickbait to withhold that part.

Regardless of how you define "clickbait", you are either emotional or not familiar with earning calls.

Keep that in mind every time the fanboy in you wants to post how badly AMD is kicking Intel's ass. The enthusiast market is a terrible barometer to use for the entire industry.

You seem to be a typical "fanboy war" starter that I see around the internet. They're always evoking straw man fallacy and tags everyone with derogatory names. It is a fact AMD kicked Intel's ass with Threadripper and very recently, the laptop market in terms of performance. Those are what we care. That does not imply anything on their financial performance.

Why is gross marging going down? It has increased constantly from 1Q19 to 1Q20 from 41 % to now 46 % (over all).

I was referring to the guidance/outlook for the next quarter and the rest of the year.

Probably the increased cost of 7nm over 14/12 nm and the impact the end of crypto mining had on GPU demand.

Can't be. They've been releasing products on 7nm since Jan 2019 and it gets more and more mature as time goes on. AMD's Crypto Mining demand has been dead since early last year, so also no.

 

[mitch074]

Can't be. They've been releasing products on 7nm since Jan 2019 and it gets more and more mature as time goes on. AMD's Crypto Mining demand has been dead since early last year, so also no.

The majority of units shipped back then was still on 12nm, and most of it single package. Now each x86 chip package contains 2 chips: one I/O in 12 nm and one or more 7nm CPU chip. That does increase overall cost, coupled with lower prices.

 

[refillable]

The majority of units shipped back then was still on 12nm, and most of it single package. Now each x86 chip package contains 2 chips: one I/O in 12 nm and one or more 7nm CPU chip. That does increase overall cost, coupled with lower prices.

In that logic it'd be down since Q3 or Q4 2019, but that is quite the contrary. It still went up on Q1 2020. Renoir is definitely more expensive to manufacture than Picasso, but that should be offset with much higher asking prices. That's why I thought about PS5/X1X SoCs messing up the margins.

 

[mitch074]

In that logic it'd be down since Q3 or Q4 2019, but that is quite the contrary. It still went up on Q1 2020. Renoir is definitely more expensive to manufacture than Picasso, but that should be offset with much higher asking prices. That's why I thought about PS5/X1X SoCs messing up the margins.

I'm not so sure - I wouldn't be surprised if OEMs had stocked up on older chips at the time due to Trump threatening taxes on stuff made in China.