News AMD 1Q22 Results

[Hitman928]

AMD posted another monster quarter with strong Q2 guidance. More to follow.

 

[jpiniero]

AMD posted the 10-Q.... 7% decline in unit shipments for Client. Note this includes Radeon in it too so it's not quite like for like. 42% increase in ASP.

Compared to Intel which was -35% in Notebook with a 32% increase in ASP and desktop was down 11% with a 7% ASP increase. So despite selling decently less, AMD did gain quite a bit of share from Intel not selling a bazillion 14 nm Atom Chromebooks.

 

[jpiniero]

Well, lets just say that for the next year or so, AMD will do nothing but gain marketshare

Last year in client AMD even shipped less than 2020 so yes Intel gained market share. The big revenue gains increase came from the way higher ASP.

AMD didn't post the 10-Q yet so can't compare to Intel for Q1. Intel did have a big drop in volume for both laptop and desktop in Q1 so AMD likely did gain share.

 

[Hitman928]

• Advanced Micro Devices press release (NASDAQ:AMD): Q1 Non-GAAP EPS of $1.13 beats by $0.20.
• Revenue of $5.9B (+71.2% Y/Y) beats by $330M.
• For the second quarter of 2022, AMD expects revenue to be approximately $6.5 billion vs. $6.36B consensus, plus or minus $200 million, an increase of approximately 69% year-over-year and approximately 10% quarter-over-quarter. The year-over-year increase is expected to be driven by the addition of Xilinx and higher server, semi-custom and client revenue. The quarter-over-quarter increase is expected to be primarily driven by Xilinx and higher server revenue. AMD expects non-GAAP gross margin to be approximately 54% in the second quarter of 2022.
• For the full year 2022, AMD now expects revenue to be approximately $26.3 billion vs. $25.45B consensus, an increase of approximately 60% over 2021, up from prior guidance of approximately 31%, driven by the addition of Xilinx and higher server and semi-custom revenue. AMD expects non-GAAP gross margin to be approximately 54% for 2022, up from prior guidance of approximately 51%.

A lot of the increase comes from now counting Xilinx revenue as part of AMD. Will try to dig for details on 'core' AMD results.

Edit:

Without counting XLNX, AMD revenue was $5.32B for the quarter with 51% GM. This is a ~54% increase in Y/Y revenue and ~10% Q/Q increase.

CEO Dr. Lisa Su, “Each of our businesses grew by a significant double digit percentage year-over-year, led by EPYC server processor revenue more than doubling for the third straight quarter."

Advanced Micro Devices tops earnings and revenue expectations; revenue jumps 71%

Advanced Micro Devices press release (AMD): Q1 Non-GAAP EPS of $1.13 beats by $0.20.Revenue of $5.9B (+71.2% Y/Y) beats by $330M.Shares +4.2%.For the second quarter of...

seekingalpha.com

 

[Hitman928]

• Leading the way during the quarter was revenue attributed to its Computing and Graphics segment, which saw sales rise 33% year-over-year to $2.8 billion, thanks to AMD's Ryzen and Radeon processors.
• Revenue attributed to its Enterprise, Embedded and Semi-Custom segment came in at $2.5 billion, up 88% year-over-year and 13% sequentially, thanks to higher revenue from its EPYC processor, semi-custom and embedded product sales.
• Santa Clara, California-based AMD (AMD) ended the quarter with $6.5 billion in cash and cash equivalents and bought back $1.9 billion in stock during the period.
• AMD (AMD) also raised its full-year guidance, saying it now expects to generate $26.3 billion in revenue, up 60% year-over-year, up from a previous outlook of 31%. The increase is due in part to the Xilinx acquisition as well as higher server and semi-customer revenue.
• It also expects non-GAAP gross margins to be 54% during the year, up from a prior outlook of approximately 51%.

Advanced Micro Devices jumps after Q1 results top expectations, boosts guidance

Advanced Micro Devices (AMD) shares rose after the semiconductor giant posted first-quarter results that beat expectations and raised its full-year guidance.

seekingalpha.com

 

[DisEnchantment]

For the full year 2022, AMD now expects revenue to be approximately $26.3 billion vs. $25.45B consensus, an increase of approximately 60% over 2021, up from prior guidance of approximately 31%, driven by the addition of Xilinx and higher server and semi-custom revenue. AMD expects non-GAAP gross margin to be approximately 54% for 2022, up from prior guidance of approximately 51%.

With this growth rate, Intel will be facing a different beast in two years time.
By end of 2024, AMD will be crossing of 50B Yearly revenue.

 

[Hitman928]

If both Intel and AMD's full year guidances are accurate, then AMD will close with ~1/3 of Intel's yearly revenue and higher gross margins.

 

[turtile]

If both Intel and AMD's full year guidances are accurate, then AMD will close with ~1/3 of Intel's yearly revenue and higher gross margins.

I wonder what the total comes to if TSMC's revenue from AMD is added in.

 

[Saylick]

On the Earnings call... I think I heard them say something about a Xilinx inferencing chip that uses AMD CPUs will be released in the first half of 2023.

 

[DisEnchantment]

On the Earnings call... I think I heard them say something about a Xilinx inferencing chip that uses AMD CPUs will be released in the first half of 2023.

Other way around, Xilinx inference IP being used inside CPUs.

 

[Saylick]

Woah, they are going to change the names of there revenue segments. That's big, because everyone has been picking at AMD to split out server from their enterprise and embedded segment.

 

[Saylick]

Other way around, Xilinx inference IP being used inside CPUs.

Thanks, I'll have to rewind the call once it's done to re-hear that.

 

[jpiniero]

AMD sure loves them some ASP.

 

[Saylick]

Other way around, Xilinx inference IP being used inside CPUs.

Okay, gave it a second listen... here's the quote:
"As one example, we are integrating Xilinx’s differentiated AI engine across our CPU product portfolio to enable industry-leading inference capabilities, with the first products expected in 2023."

 

[UsandThem]

With this growth rate, Intel will be facing a different beast in two years time.
By end of 2024, AMD will be crossing of 50B Yearly revenue.

They do say "objects in mirror are closer than they appear".

https://www.techspot.com/news/93026-intel-boss-gelsinger-amd-rearview-mirror-following-alder.html

Just think If AMD hadn't had such limited supplies from TSMC, forcing them to pretty much abandon the entry-level / low-end of the market over the last few years (and which pretty much affected the availability of all of their CPUs for roughly a full year after they launched their 5000 series).

As impressive as Pat Gelsinger has been at Intel since he took over, Lisa Su has just been killing it over at AMD quarter after quarter.

 

[jpiniero]

Just think If AMD hadn't had such limited supplies from TSMC, forcing them to pretty much abandon the entry-level / low-end of the market over the last few years

Isn't that kind of the rub though? Their margins are going up because they are jacking up prices but the client volume is probably not going up that much. But as long as TSMC remains super expensive serving the low end isn't going to work.

 

[Markfw]

Isn't that kind of the rub though? Their margins are going up because they are jacking up prices but the client volume is probably not going up that much. But as long as TSMC remains super expensive serving the low end isn't going to work.

That will change in time. Right now, concentrating on the high end, mostly server, allows them to make a LOT of money and gain marketshare and mindshare. The lower end will come as MFG costs drop, and they will when things stabilize.

 

[moinmoin]

Woah, they are going to change the names of there revenue segments. That's big, because everyone has been picking at AMD to split out server from their enterprise and embedded segment.

AMD always needed some big enough business section that is able to hide the exact numbers in semi custom from Microsoft and Sony (as they could deduce each other's numbers using their own otherwise). Server had to do that so far, Xilinx works as well now and is a better fit for semi custom anyway.

 

[jpiniero]

That will change in time. Right now, concentrating on the high end, mostly server, allows them to make a LOT of money and gain marketshare and mindshare. The lower end will come as MFG costs drop, and they will when things stabilize.

That's what I mean, the costs won't be dropping, at least as long as they fab at TSMC. Obviously it's not a problem right now but I do think there is a limit to their price hikes.

 

[Markfw]

That's what I mean, the costs won't be dropping, at least as long as they fab at TSMC. Obviously it's not a problem right now but I do think there is a limit to their price hikes.

What I mean, is after more CPU's convert to 5nm and below, 7nm will get cheaper, and the lower end chips can be made to use that resource, and it will get cheaper in time.

 

[Saylick]

AMD always needed some big enough business section that is able to hide the exact numbers in semi custom from Microsoft and Sony (as they could deduce each other's numbers using their own otherwise). Server had to do that so far, Xilinx works as well now and is a better fit for semi custom anyway.

Right, if I had to guess I think consoles falls under the Gaming segment now, which includes Radeon (Ryzen went to the Client segment), so they'll still have the ability to shield the console revenue between MS and Sony.

Edit: Yep, consoles are a part of the Gaming segment now (see below). Looks like Xilinx revenue gets sprinkled in across all segments, depending on where it was used.

 

[jpiniero]

What I mean, is after more CPU's convert to 5nm and below, 7nm will get cheaper, and the lower end chips can be made to use that resource, and it will get cheaper in time.

TSMC is so popular right now that N7/N6 getting cheaper is going to take awhile.

 

[Markfw]

TSMC is so popular right now that N7/N6 getting cheaper is going to take awhile.

Yes, but by then maybe marketshare will be 50/50 with Intel (2-3 years ?? or more) and the heat will be on. Even if they have to go elsewhere. They will need cheap CPUs then. Now they are just rolling in dough.

 

[moinmoin]

Right, if I had to guess I think consoles falls under the Gaming segment now, which includes Radeon (Ryzen went to the Client segment), so they'll still have the ability to shield the console revenue between MS and Sony.

Edit: Yep, consoles are a part of the Gaming segment now (see below). Looks like Xilinx revenue gets sprinkled in across all segments, depending on where it was used.
View attachment 61023

Thanks for the edit, already wanted to ask where you took the hint from that AMD would want to split the business areas like this. Seems sensible that way indeed. Though I'm not perfectly sure they'll indeed use that separation for the numbers in the future earnings calls.

Link to AMD's page with presentation slides etc:

AMD Reports First Quarter 2022 Financial Results

Browse AMD’s company-wide and financial press releases.

ir.amd.com

Edit: I see it has been announced in the call.

https://twitter.com/x/status/1521618918577774594

 

[DisEnchantment]

One of the interesting things being answered by Victor is that Xilinx Accelerators and AMD Accelerators will share a common stack.
Vitis + ROCm integration possibly going to happen like Intel oneAPI.
And common product strategy for AI to be unveiled in FAD2022