AMD Smashes Revenue Records as Zen 3, Xbox Series X, PS5 Ramp Up


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AMD’s Q3 2020 benefits are in, and they paint an very strong image for the agency on the eve of launching two future-era consoles: Microsoft’s Xbox Collection X, and the Sony PlayStation five.

Right before we dive into the present day figures, I want to promptly phase again to the effects AMD reported in Q3 2013, when both of those the PS4 and Xbox 1 had been prepping for launch. AMD’s This fall 2013 would be somewhat much larger than its Q3, but you can see the console ramp quite evidently in terms of profits ($one.46B in Q3 2013 compared to $1.16B in Q2).

In Q3 2013, AMD claimed $1.46B in income. Gross margin was 36 %, running profits was $95M, and net profits was $48M. Now, here’s Q3 2020:

That is web revenue of $2.8B (up 1.92x from 2013), an 8 share position improvement to gross margin, and internet money of $390M (an enhancement of 8.125x due to the fact 2013). Back again in 2013, the PS4 and Xbox One particular nearly surely saved AMD as a firm. These two contracts represented tested design and style wins with major companies to give silicon design get the job done and brought in hundreds of hundreds of thousands in revenue every single quarter on a reputable foundation.

These days, AMD’s console organization is a core component of its financials, but it isn’t a “must have” whose absence would doom the organization. AMD’s compute and graphics division is putting up formidable figures, all on its individual:

Not that I want to indicate anything at all is wrong with the Business, Embedded, and Semicustom marketplaces. They are also firing well, with AMD reporting record server earnings and strong ramps for equally the Xbox Series X and PlayStation five. Server profits established a record and functioning profits grew considerably both of those 12 months-above-yr and quarter-about-quarter. Q4 2020 could be even greater because of to demand from customers for consoles (Q4 2013 was even larger than Q3 2013, so there’s precedent).

AMD confirmed it will begin shipping Milan (Zen 3) servers to cloud and HPC in quantity in This fall, with Tier 1 OEM availability subsequent in Q1 2021. Hyperscale HPC and OEM engagement is said to be pretty significant over-all.

According to AMD CEO Lisa Su, AMD’s recurring style and design wins are driving interest in its items in new segments and prospects, with included effect from the console ramp. AMD now expects This fall 2020 profits to be $3B, as well as or minus $100M, which is up 41 p.c 12 months-on-12 months and 7 percent sequentially. This surge will be driven drastically by console gross sales, but AMD is guiding upwards on server sector share and total facts centre demand for its solutions as perfectly.

There’s no bad news listed here. The enterprise also declared its acquire of Xilinx in an all-inventory offer worthy of $35B for the duration of the conference contact, but we have protected that information and facts in extra depth in this article.

Now Examine:

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