AMD announced excellent second-quarter earnings for 2018 as the company’s overall position continues to strengthen. Overall revenue was $1.76B compared with $1.15B for the same period in 2017, up 1.53x year-on-year. Sales also improved by 7 percent compared with Q1 2018, and gross margin for the quarter was 37 percent, compared with 34 percent in Q2 2017. Net income for the quarter was $116M.
“We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years,” said Dr. Lisa Su, AMD president and CEO. “Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth.”
Higher revenue for the year on year period was driven by stronger sales across all of AMD’s business segments, while the sequential increase was driven by higher revenue in the Enterprise, Embedded, and Semi-Custom segment. Overall GPU revenue fell by four percent according to Patrick Moorhead, which isn’t much considering the decline in cryptocurrency shipments over the same period.
Epyc saw a sequential unit doubling in hyperscalers, which was expected given prior customer win announcements, but nice to see that execution. Overall, Epyc units and revenue increased 50 percent indicating a consistent upward trajectory. The follow-on 7nm and new Zen2 core server part, code-named Rome, is sampling and the company considers it looking “healthy,” a very good sign for AMD’s server future.
If we break things down by segment, AMD’s Compute and Graphics revenue dropped slightly quarter-on-quarter due to weakness in cryptocurrency sales. Growth in Enterprise, Embedded, and Semi-Custom (almost entirely driven by the enterprise chunk of the equation) offset that small decline. Overall, AMD continues to perform extremely well. It’s absolutely mandatory that the company nail its 7nm transition, but provided it does so the firm seems poised for continued success.
What to Expect at the 2018 New York Auto Show: Crush of Crossovers, a Couple Key Sedans
The focus is on small and midsize crossvers at NYIAS. The Big Apple's own Cadillac will unleash a Cadillac-only 550 hp twin-turbo V8 not shared with other GM cars. The most mainstream new sedan: the Nissan Altima. Here's what to expect.
Leaked Benchmarks Show Intel’s Core i9-9900K Crushing AMD’s Ryzen 7 2700X
Intel's Core i9 looks to be a winner of a part if early tests are accurate.
OpenAI Bots Crush the Best Human Dota 2 Players in the World
OpenAI challenged five of the world's best pro Dota 2 players, and the AI won handily.
Nvidia Crushes Self to Take AI Benchmark Crown
Nvidia announced that it has topped the initial results for the emerging industry standard AI benchmark MLPerf, but digging into the details shows it was pretty much the only game in town. If nothing else, it shows how dominant the GPU maker has been in the AI market.