News AMD Smashes Earnings Records Again, Chip Shortages To Last Until Second Half of 2021

[Admin]

AMD smashed several revenue and profit records during both the fourth quarter of 2020 and the full year.

AMD Smashes Earnings Records Again, Chip Shortages To Last Until Second Half of 2021 : Read more

 

[digitalgriffin]

A quite remarkable feat. 47% margin is nothing but insanely good.

 

[spongiemaster]

A quite remarkable feat. 47% margin is nothing but insanely good.

Sadly, scalpers of their products are probably pulling better margins than that. Really sucks seeing middlemen making more money off of products than the company that did all the work developing them and bringing them to market.

 

[TerryLaze]

A quite remarkable feat. 47% margin is nothing but insanely good.

That's gross margin and far less impressive than what you might think.
If you look at the money they made by their own accord it's 1.37 (operating income) divided by revenue that's about 13% for operating margin.

The real story here is the TAX benefit of 1.3b that basically doubles AMDs profit, were did that come from?

 

[Chung Leong]

The real story here is the TAX benefit of 1.3b that basically doubles AMDs profit, were did that come from?

Probably losses carried forward from years when it was operating in the red. Plus investment losses associated with GloFo.

 

[gggplaya]

Probably losses carried forward from years when it was operating in the red. Plus investment losses associated with GloFo.

Yes, most likely. A single years earnings can be impressive but it's all relative if you've been pumping tons of money into capital the last few years and scaling your business just to make this single year profit. The IRS looks at your earnings over 6 years "I think." Looking at earning over a span of this time, you still aren't in the black if the last 5 years were red.

 

[SyDiko]

A quite remarkable feat. 47% margin is nothing but insanely good.

Their intended market can barely get a hold of their product... Margins are up now, thanks to bots, but at this rate they'll eventually lose their 'best bang for your buck' base (to Intel) again and they'll be right back to Square 1.

 

[spongiemaster]

Their intended market can barely get a hold of their product... Margins are up now, thanks to bots, but at this rate they'll eventually lose their 'best bang for your buck' base (to Intel) again and they'll be right back to Square 1.

Bots don't affect AMD's margins.

 

[digitalgriffin]

Their intended market can barely get a hold of their product... Margins are up now, thanks to bots, but at this rate they'll eventually lose their 'best bang for your buck' base (to Intel) again and they'll be right back to Square 1.

It's simple really. If demand isn't there, the prices will lower until it's either A) no longer profitable or B) equilibrium is reached and sales stabilize. The later is usually the peak of the total revenue curve.