AMD Q1 revenue grew 93 percent due to robust consumer and enterprise chipset demand

AMD Q1 2020 results in.

Advanced Micro Devices (AMD) recently posted first-quarter financial results revealed that it grew its revenue by 93 percent year-over-year. Its extraordinarily strong showing is due to intense demand for its consumer and enterprise products.

CEO Dr. Lisa Su said the corporation has “good visibility” for the second half of 2021 despite the impact of the global semiconductor shortage.

Because of those developments, the fabless chipmaker now expects to increase its annual income by 50 percent. Previously, it offered guidance that it would beat its 2020 sales by 39 percent.

Huge Spike in Consumer and Enterprise Product Revenue

In Q1, AMD brought in $3.44 billion in revenue with adjusted net income of $642 million, or $0.52 per share. The firm’s phenomenal returns topped Wall Street’s estimates, which pegged its sales and profit at $3.21 billion and $0.44 per share. It also beat its quarterly outlook by 7.49 percent.

The corporation’s substantial yearly growth came from a 46 percent spike in computing and graphics revenue and a 286 percent jump in enterprise, embedded, and semi-custom chip income. Those figures reflect the recent widespread adoption of its hardware among individuals and businesses.

Dr. Su attributed the firm’s success to its very product portfolio and ability to execute its strategy.

By focusing entirely on chip design and outsourcing production TSMC, it made massive leaps in technological development. That enabled it to take advantage of the digitalization boom that followed the COVID-19 outbreak. Its ability to offer outstanding CPUs, GPUs, and server processors right as the world needed them most has significantly boosted its industry standing.

After nearing bankruptcy six years ago, AMD has become a real challenger to Intel’s dominant market position.

AMD’s Positive Outlook for 2021

AMD anticipates generating around $3.6 billion in revenue for the second quarter, an 86 percent year-over-year improvement. The company expects intense end-market demand for its products will continue driving its growth in the current period. Since it recently launched a new graphics processor and stated its more popular items would be restocked soon, its forecast is reasonable.

AMD also believes it will make $14.64 billion this year, a sizable upgrade on the $9.76 billion it earned in 2020.

On the one hand, the corporation’s outlook is sensible in light of current market conditions and the

It worked hard to build supply relationships with several hyperscale online service providers, including Amazon, Google, Microsoft, Oracle, and Tencent. Acer, Asus, HP, and Lenovo are also using their Ryzen mobile processors to power their latest laptops. In addition, it makes components that support the rendering capabilities of the newest PlayStation and Xbox gaming consoles.

Consequently, AMD should receive strong returns from its consumer and inventory segments through year’s end.

On the other hand, the world is grappling with a global semiconductor shortage currently affecting all sectors of industry.

Recently, TSMC, AMD’s primary foundry services provider, revealed its fabs are running at “over 100 percent utilization.” That indicates its client will cannot fully meet the demand for its products in the near term. However, its chief executive said more of its offerings should be made available in the second half of 2021.

Based on interest alone, the fabless manufacturer is on course to having its most lucrative year to date. But its long-term performance is contingent upon its ability to satisfy demand. Either way, AMD has done the work to establish itself as one of the semiconductor industry’s most important players.


Please enter your comment!
Please enter your name here