AMD is going to report its Q3 earnings this Wednesday morning, with analysts expecting significant growth both in terms of the sequential and YoY revenue. After Intel declared its Q3 earnings earlier this week, bundled with a bunch of roadmap delays, analysts expect AMD’s progress to be in stark contrast to the former’s muted growth.
The Q3 revenue is expected to grow by around a third compared to the last fiscal, reaching $2.56 billion, which is 33% higher sequentially and a YoY increase of more than 40%.
The consumer processor and graphics division is expected to show moderate gains of about 9% sequential and 16% YoY to $1.49 billion. Keep in mind that this fiscal reporting excludes the sales for the Ryzen 5000 desktop processors as well as the Radeon RX 6000 GPUs which are expected to compete neck-to-neck against NVIDIA’s RTX 30 series lineup.
The majority of the growth is expected to come from the server and custom semiconductor division which is slated to grow by a whopping 88% sequentially, and more than double compared to last year, reaching a figure of $1.06 billion. This increase can be primarily attributed to the launch of the next-gen Xbox Series X and PS5 consoles, both of which are based on a custom AMD SoC utilizing the Zen 2 CPU and RDNA 2 GPU architecture.
For the fourth and last quarter of the year, AMD is expected to bring in total revenue of around $2.6-2.7 billion, which is an increase of 20-25% YoY. This figure will likely be exceeded depending on how well the supply and sales of the new Zen 3 based Ryzen 5000 CPUs and Radeon RX 6000 GPUs go.
AMD is yet to announce the Milan server lineup based on the Zen 3 core architecture which is expected to show IPC gains of as much as 20% compared to Rome, further pushing Intel into a corner. The latter has delayed the launch of its 10nm Ice Lake-SP chips for the fourth consecutive time to Q1 2021. AMD has already promised that Milan will start shipping in the fourth quarter of this year, so we can expect an announcement for the same in November.