AMD’s Q3 2020 final results are in, and they paint an incredibly robust photo for the firm on the eve of launching two following-technology consoles: Microsoft’s Xbox Collection X, and the Sony PlayStation 5.
Just before we dive into the fashionable figures, I want to rapidly stage again to the final results AMD described in Q3 2013, when equally the PS4 and Xbox A person ended up prepping for start. AMD’s Q4 2013 would be slightly larger than its Q3, but you can see the console ramp extremely evidently in conditions of revenue ($1.46B in Q3 2013 as opposed to $1.16B in Q2).
In Q3 2013, AMD described $1.46B in revenue. Gross margin was 36 per cent, functioning income was $95M, and web income was $48M. Now, here’s Q3 2020:
That’s web revenue of $2.8B (up 1.92x from 2013), an 8 proportion point advancement to gross margin, and web income of $390M (an advancement of 8.125x considering the fact that 2013). Back again in 2013, the PS4 and Xbox A person just about undoubtedly saved AMD as a firm. These two contracts represented demonstrated style and design wins with important companies to supply silicon style and design get the job done and introduced in hundreds of thousands and thousands in revenue each and every quarter on a trustworthy basis.
Now, AMD’s console small business is a core part of its financials, but it is not a “must have” whose absence would doom the firm. AMD’s compute and graphics division is putting up formidable figures, all on its very own:
Not that I want to indicate everything is mistaken with the Business, Embedded, and Semicustom markets. They are also firing properly, with AMD reporting history server revenue and robust ramps for equally the Xbox Collection X and PlayStation 5. Server revenue established a history and functioning income grew significantly equally calendar year-above-calendar year and quarter-above-quarter. Q4 2020 could be even bigger thanks to demand for consoles (Q4 2013 was bigger than Q3 2013, so there’s precedent).
AMD verified it will start off delivery Milan (Zen 3) servers to cloud and HPC in quantity in Q4, with Tier 1 OEM availability next in Q1 2021. Hyperscale HPC and OEM engagement is claimed to be extremely substantial general.
According to AMD CEO Lisa Su, AMD’s repeated style and design wins are driving interest in its merchandise in new segments and options, with added impression from the console ramp. AMD now expects Q4 2020 revenue to be $3B, additionally or minus $100M, which is up 41 per cent calendar year-on-calendar year and 7 per cent sequentially. This surge will be driven appreciably by console product sales, but AMD is guiding upwards on server sector share and general info center demand for its merchandise as properly.
There is no poor information in this article. The firm also introduced its order of Xilinx in an all-stock offer truly worth $35B throughout the convention simply call, but we’ve lined that information and facts in extra depth in this article.