AMD has been experiencing the most prosperous period of its corporate life for around ten years. In addition to the grant from Xilinx for $35 billion, AMD recorded a record performance in terms of turnover during this third quarter of 2020.
Analysis of this increase in turnover
This increase in turnover is achieved thanks to sales of Ryzen processors and chips for the latest generation consoles. AMD reached a record revenue of $2.8 billion for Q3 2020. Last year, over the same period, its revenue was around $1.79 billion. That’s a net increase of 56%. In Q2 this year, AMD reported revenue of $1.93 billion. We are therefore seeing a growth of 45%. This is a record for AMD, it is the highest turnover recorded by this company in a decade. This result is achieved mainly thanks to the strong demand from Sony and Microsoft for its CPUs, GPUs and semi-customized chips for the latest generation consoles .
The gross operating surplus for this third quarter or EBITDA (Earnings before interest, taxes, depreciation, and amortization) reached $1.23 billion. An increase of 58% compared to last year. Furthermore, operating profit is around $450 million.
What are the best performing sectors?
The Computer Science and Graphics Division is experiencing an annual increase of 31%. It is above all the sales of Ryzen processors which have largely contributed to this success. The sale of Radeon graphics is not at its best at the moment. Customers are surely waiting for the new generations of cards which will be released within a few days. This Computer and Graphics division recorded a 22% increase in sales compared to the 2nd quarter of this year.
The Embedded and Semi-Custom Enterprise Division doubled its sales figures compared to 2019. These are the sales of semi-custom chips used in new generation game consoles as well as EPYC processors for Data Centers which led AMD to this success. AMD is indeed experiencing strong demand for these chips from video game manufacturers such as Sony.
AMD's Q4 forecast
AMD plans to reach a turnover of 3 billion dollars for the last quarter of 2020. This figure is entirely realistic if we take into account the new products that will be brought to market by Lisa Su's sales team before the end of the year. We can cite, among others, the Radeon 6000 series graphics cards based on the RDNA 2 architecture and the Ryzen processors based on the Zen 3 architecture. Furthermore, the fact of having purchased Xilinx gives AMD greater notoriety. Which will allow it to shine a little more.
In short, 2020 is a very good year for AMD. The health crisis does not seem to affect this IT and electronics giant.
