AMD reported a record 1st quarter with a revenue increase of over 90% compared to the same period last year, with a gross margin of 46% and all-around positive growth from all segments. The client computing group was driven by strong Ryzen CPU sales, complemented by stronger-than-usual Radeon RX 6000 shipments which paired with an all-time high ASP resulted in the best quarter in the chipmaker’s history.
In the enterprise and semi-custom segments, Epyc Rome and Milan sales drove a double-digit gain compared to the last quarter and a mix of console-data center revenue increase led to a phenomenal increase of nearly 300% compared to the previous year.
Looking at the company’s CPU market share, we’re looking at a close to 30% share by the end of the first quarter, with some databases like Statista and PassMark indicating a share of nearly 40% for Team Red. While the Ryzen CPU sales were fairly mild for the quarter, the mobile APU revenue grew for the sixth straight quarter, with the newer Cezanne SoCs seeing an increase of 2x compared to Renoir in terms of revenue ramp-up and OEM designs.
The graphics card market has been a nightmare for gamers. Limited chip supply and record demand (courtesy of Ether miners) have resulted in severe product shortages and sky-high prices for just about every GPU, high-end or not. Despite all this, AMD’s graphics division, Radeon Technologies Group (RTG) had a resilient Q1, with a double-digit increase in revenue, both year-on-year and quarter-over-quarter. This can be largely attributed to sales of Big Navi GPUs along with the higher YoY and QoQ ASP (selling prices) for the new Radeon RX 6000 GPUs. AMD’s first RDNA 2 powered laptops are also slated to launch later this quarter, and the company is expecting its desktop shipments to grow substantially over the course of Q3 and Q4 2021. As such, you can expect the market to have plenty of Big Navi parts by the holiday season.
Like the Client Division, the Enterprise and Semi-Custom segments also had a strong first quarter. The Epyc processor sales doubled compared to the same quarter last year and saw double-digit growth compared to the last quarter. This was the result of increased Epyc Rome sales, complemented by the launch of the Milan chips which offer significantly better single-threaded performance.