AMD has announced its Q3 earnings report, beating estimates and forging new highs. Most analysts were expecting an increase of 40-45% (YoY) in the overall earnings, with a growth of 33% sequentially. However, the actual figures were notably higher with a YoY revenue growth of 56% and a quarterly gain of 45%.
Update: This is highest quarterly revenue for AMD in the last 25-30 years:
This brought the revenue up from $1,801 million in Q3 2019 to $2,801 million in Q3 2020 ($1,932M in Q2 2020). The operating income grew by a whopping 140% YoY and a massive 160% compared to the last quarter. It went from around just $186 million in Q3 2020 to more than twice as much this year to $449 million.
As expected, the Enterprise and Semi-Custom Division was the primary driving factor behind the phenomenal increase, growing by 116% YoY and 101 on a quarterly basis. The operating income from this segment was even more impressive, expanding by 131% on a yearly basis and 327% compared to Q2 2020. This can be attributed to the launch of the next-gen Xbox Series X and PS5 consoles, both of which are powered by AMD’s designs.
The Computing and Graphics Division saw moderate gains, growing by around 31% YoY, from $1.27M in Q3 2019 to $1.67M in Q3 2020. The quarterly gains were roughly similar, growing by 22%. Like the Enterprise Segment, the operating income of the CG Division was also a big step up, growing by 115% YoY to $348M ($179M in Q3 2019) and 92% quarterly (from $200M).