AMD CPU/GPU Average Selling Prices Rise as Company Reports Revenue Increase of 99% YoY

AMD just announced its Q2 earnings with a staggering gain of 99% compared to the same quarter last year. The quarterly revenue came in at $3.85 billion, up from $1.93 billion in Q2 2020 and $3.44 billion in Q1 2021. The gross profit was up 116%, reaching $1.83 billion, compared to just $850 million in Q2 2020, and $1.58 billion in Q1 2021. Finally, as expected, the gross margin grew to 48%, compared to 44% in the same quarter last year and 46% in the last quarter.

Both the Compute|Graphics and the Enterprise|Semi-Custom Divisions contributed to the phenomenal increase in the Q2 revenue. The former was up 65% YoY to $2.25 billion (from $1.36 billion last year) while the latter increased by 186% YoY to . (advair diskus) 6 billion (from just $0.56 billion last year). The operating income also rose by leaps and bounds, growing by 163% for the Compute|Graphics Division and 1,106% for the Enterprise|Semi-Custom Division.

AMD’s Average Selling Prices (ASPs) rose across the board. The client processor average selling price (ASP) grew year-over-year as well as quarter-over-quarter, driven by a richer mix of Ryzen desktop and notebook processor sales. Similarly, the GPU ASP grew year-over-year and quarter-over-quarter (for the second straight quarter), driven by high-end graphics product sales, including data center GPU sales.  

For the Enterprise, Embedded, and Semi-Custom segment, the revenue increases were primarily driven by higher EPYC processor sales, supplemented by increased console (PS5, Xbox Series X|S, etc) sales.

The future looks bright for AMD, with expected revenue of $4.1 billion in the third quarter of 2021, a gross margin of 48%, and an overall yearly growth of 60% for FY2021. The Zen 3 client and server processors remain on track for a late 2022 launch, alongside the RDNA 3 GPUs. Both will be fabbed on TSMC’s 5nm node, with an advanced chiplet design.

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Areej Syed

Processors, PC gaming, and the past. I have been writing about computer hardware for over seven years with more than 5000 published articles. Started off during engineering college and haven't stopped since. Mass Effect, Dragon Age, Divinity, Torment, Baldur's Gate and so much more... Contact: areejs12@hardwaretimes.com.
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