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 $1.6 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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