Revenue in the second quarter increased by 26% YoY, AMD is inclined to thank for this strong demand for client and server processors. The proceeds from their sale have more than doubled compared to the same period last year. Of course, in the client segment, the preponderance was in favor of mobile processors, the revenue and the number of copies sold were record-breaking, but the sales volumes of desktop processors decreased compared to the first quarter. On the other hand, their average price rose, which contributed to the bottom line revenue growth in the desktop segment. Revenue from the sale of mobile processors also more than doubled YoY.

Directly, revenue from the sale of mobile processors of the Ryzen 4000 family grew at a record pace for AMD. The company is also optimistic about the second half of the year. If in the spring she expected that the PC market expects a recession provoked by the pandemic and the economic crisis, now she expects an increase in demand in the PC segment. Similar dynamics will be observed in the server segment. The PC market will of course be focused on notebook processors, although new Zen 3-based desktop processors will be available later this year.

Server Components Provide 20% AMD Revenue

If the direction of computing products and graphics brought AMD in the second quarter of $ 1.367 billion in revenue, which is 45% more than in the same period last year, then server components and “semi-custom” products in annual comparison showed a decrease in revenue by 4% to $ 565 million. to the outgoing generation of gaming consoles, although EPYC server processors hit record sales in the second quarter. The goal set one and a half years ago has been achieved – AMD now holds more than 10% of the server processor market.

As explained by the CEO of the company Lisa Su (Lisa Su), the fourth generation EPYC server processors with Zen 4 architecture are in development, they will be produced using 5nm technology.

Another important achievement in the server direction was the increase in the share of revenue received from the sale of components of this class. This figure reached 20%, mainly due to the EPYC central processors.

RDNA 2 Graphics Announced in Q4

In the graphics segment, AMD’s revenue declined YoY as a double-digit increase in mobile GPU sales failed to offset the decline in desktop demand. In the mobile segment, sales were driven by new RDNA solutions, including the Radeon RX 5000M series. In the server segment, GPU revenues have declined but may increase in the second half of the year following the release of CDNA computing accelerators.

From Lisa Su’s comments, it becomes clear that the announcement of graphics solutions with the RDNA 2 architecture, including the flagship “Big Navi”, is scheduled for the fourth quarter of this year. A complete update of the assortment of video cards in all price segments is planned, but you should not expect that it will happen at once. Revenue growth after the release of new graphics solutions will be observed both in the fourth quarter and next year.

Ryzen Client Processor Sales Bring Record Revenue to AMD

AMD client processor revenues hit a 12-year high in the second quarter. Self-isolation of consumers contributed to the growth of demand for laptops, but the head of AMD is inclined to believe that the new record for revenue is a natural result of the company’s increase in market share over the past 11 quarters.

In the near future, AMD intends to focus on promoting its mobile processors where its products have historically not been widely represented – in the commercial and gaming segments. There are already more than 50 laptop models on the market based on Ryzen 4000 (Renoir) series processors, and more than 30 laptop models will be added to the range in the near future.

AMD looks into the second half of the year with confidence

AMD’s profit margins in the second quarter had to sacrifice a bit, as the start of shipments of components for new game consoles reduced it in sequential comparison from 46 to 44%, but in annual comparison, it was still three percentage points higher. In the third quarter, the company expects profit margins to remain at the current level. Revenue should be placed in the range from $ 2.45 to $ 2.65 billion. At the end of the year, the forecast for revenue growth has been increased from 25 to 32%, and the profit margin should rise to 45%.

As Lisa Su explained, there is little doubt now that the company’s financial performance will improve in the second half of the year, supported by strong demand for both current generation products and new ones related to Zen 3 and RDNA 2 architectures. The trend towards revenue growth will be long-term as the CEO of the company is convinced.

After the close of trading, AMD shares were up more than 10% as investors were impressed not only by the company’s current success but also by the rarely favorable outlook for the second half at this troubled time.