Advanced Micro Devices (AMD) recently posted its fourth-quarter financial results, which revealed it grew its revenue by 53 percent from 2019.
The chipmaker announced it improved its full-year revenue by 45 percent in 2020. The firm generated record yearly income because of remarkably strong sales of its high-performance computing (HPC) products.
The corporation also offered a sales forecast for 2021 that indicates its expansion will continue due to the resurgent popularity of its lineup.
AMD’s Blockbuster Q4 2020 Results
AMD made $3.24 billion in the holiday quarter, surpassing Wall Street’s consensus projection of $3 billion.
Its outstanding results were driven by its computing and graphics chip sales, which totaled $1.96 billion. The division’s income definitely received a boost from consumers purchasing new hardware to cope with life in the COVID-19 era. But it also benefited from the public coming to view its products as best-in-class for gaming and creative work.
AMD’s enterprise, embedded, and semi-custom unit enjoyed a massive 176 percent spike in quarterly revenue for similar reasons.
The segment earned $1.28 billion last period in large part because it makes the system-on-a-chips (SoCs) that power the hugely in-demand PlayStation 5 and Xbox Series X. However, it secured supply deals with Sony and Microsoft because they saw how well its hardware rendered their games. It shipped large quantities of its server processors because data center providers appreciate how its EPYC SoCs handled their workloads.
Based on its surging 2020 sales, AMD made major gains in its target markets by offering cutting-edge products. After spending much of the previous decade lost in the wildness, it is back on the right track. Judging by its recent moves, the firm will leverage its newfound technological leadership to expand its market presence.
AMD to Foster Growth in 2021 Through Technological Leadership
AMD anticipates generating around $3.2 billion in revenue in Q1 2021, a 79 percent annual sales increase. It also forecasts earning $13.37 billion in sales this year, a 37 percent upgrade on its 2020 gross income. CEO Dr. Lisa Su explained she expects 2021 to be another record-breaking year because of “robust demand” for the corporation’s HPC products.
On the consumer end, the firm’s upcoming portfolio refresh should create significant interest.
At CES 2021, AMD unveiled its Ryzen 5000 series microprocessors for mobile devices and desktop personal computers. Made using Taiwan Semiconductor Manufacturing Company’s (TSMC) state-of-the-art 5nm node, the new chipsets offer major generational performance improvements.
During the same event, AMD dropped more hints about its forthcoming 3rd Gen EPYC server product. The company boasted its revamped enterprise products would provide a level of performance that greatly outpaces Intel’s Xeon Gold SoCs. If its offerings are that good, it should have no problem further eating into the industry leader’s server market share.
The corporation also filed a patent last month indicating it is developing a game-changing new SoC. It documents describe a chipset that features an integrated central processing unit (CPU) and field-programmable gate array (FPGA). With the right coding, the component could independently manage and accelerate different HPC datacenter workloads. That technology would be of great interest to hyperscale cloud services providers like Google and Microsoft.
Its patent filing follows its recent announcement that it would acquire market-leading FPGA vendor Xilinx for $35 billion.
Provided AMD can execute its product roadmap, it will become one of the world’s foremost semiconductor manufacturers in short order.