AMD recorded yet another stellar quarter, with most segments seeing more than or close to a 2x increase in revenue YoY, and over 10% QoQ. The enterprise, embedded, and semi-custom segment saw a revenue growth of 75% YoY (to $2.2 billion), primarily driven by sales of Epyc Milan processors and PlayStation 5/Xbox Series consoles. This trend is expected to continue through 2022 as the strong demand for game consoles continues.
On the server side of things, Epyc processor revenue increased by over 100% YoY, growing by double-digits quarter-over-quarter. Demand was strong across both cloud and enterprise segments. In the cloud space, revenue more than doubled year-over-year as the largest providers expanded internal deployments and more than 130 new AMD Epyc-powered instances launched from Amazon Web Services, Alibaba, Google, IBM, Microsoft Azure, and others. Same with Enterprise. A 2x increase in revenue was seen YoY driven by the launch of more than 100 Epyc Milan platforms from Dell, Lenovo, HP, SuperMicro, etc.
The data center graphics revenue, primarily driven by the adoption of AMD’s monster Instinct MI200 GPU also grew by more than 100%. Major adoption of the MCM GPU on account of its incredible double precision (FP64) performance, instrumental in AI and HPC workloads has resulted in several wins for AMD in the data center space. Together with the Epyc processors, AMD’s data center market share approached or even crossed the 25% mark, up from 20% in 2020.
The volume production of Epyc Milan-X processors (3D stacked V-Cache) has already started earlier this quarter and is expected to launch from major partners in the coming months. Sampling for the 4th Gen Epyc Genoa processors (5nm Zen 4 w/ up to 96 cores) is on track for a late 2021 launch, with Bergamo slated for an early 2023 launch.
AMD expects servers to be a key growth factor in 2022, followed by the notebook, graphics, and semi-custom division. The Xilinx acquisition which is slated to reach its conclusion by the end of this quarter will also have a significant impact on the chipmaker’s results.