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News AMD 3Q20 results

Hitman928

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Apr 15, 2012
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AMD had a very strong (i.e. record setting) 3rd quarter blowing past estimates.


GAAP Quarterly Financial Results


Q3 2020Q3 2019Y/YQ2 2020Q/Q
Revenue ($M)$2,801$1,801Up 56%$1,932Up 45%
Gross profit ($M)$1,230$777Up 58%$848Up 45%
Gross margin44%43%Up 1pp44%Flat
Operating expenses ($M)$781$591Up 32%$675Up 16%
Operating income ($M)$449$186Up 141%$173Up 160%
Net income ($M)$390$120Up 225%$157Up 148%
Earnings per share$0.32$0.11Up 191%$0.13Up 146%


They are also forecasting a very strong (record setting) 4th quarter. AMD said that they are seeing increased demand for their Epyc processors and made no mention of Covid causing headwinds like Intel said they were experiencing.

For the fourth quarter of 2020, AMD expects revenue to be approximately $3.0 billion, plus or minus $100 million, an increase of approximately 41 percent year-over-year and 7 percent sequentially. The year-over-year increase is expected to be primarily driven by the ramp of new Ryzen, EPYC and semi-custom products and growing customer momentum. AMD expects non-GAAP gross margin to be approximately 45 percent in the fourth quarter of 2020.

AMD now expects 2020 revenue to grow by approximately 41 percent compared to 2019, up from prior guidance of 32 percent. Non-GAAP gross margin is expected to be approximately 45 percent, consistent with prior guidance.
AMD's growth story continues. The ramp of the console sales should have effected their margins more than they did, but AMD's increased high margin product sales were able to offset the low margin console ramp. Their increased full year revenue guidance with GM of 45% also points to higher margin products selling more than expected. With Zen3 launching in Q4, it will be tough for Intel to stop the market share loss to AMD, especially in the high value market segments.
 

moinmoin

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Jun 1, 2017
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Looks like AMD is having troubles capping its growth at an average of 25%.

Edit: Dr. Lisa Su: "We reported our fourth straight quarter with greater than 25 percent year-over-year revenue growth, highlighting our significant customer momentum."
I guess 25% is the minimum now.
 

Jimzz

Diamond Member
Oct 23, 2012
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Looks like AMD is having troubles capping its growth at an average of 25%.

Edit: Dr. Lisa Su: "We reported our fourth straight quarter with greater than 25 percent year-over-year revenue growth, highlighting our significant customer momentum."
I guess 25% is the minimum now.

Well not hard to have those growth numbers when you go from near 0%/death to matching and now leading in your area.

Hopefully they will not make the same mistake they did before by taking their foot off the gas pedal. Intel is down but they have a LOT of money and pull.
 

DisEnchantment

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Mar 3, 2017
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One of the other takeaway from the call is that Lisa said even though demand still outstrip supply they have strongly improved their supply for the next quarter and will continue to work with the supply chain throughout 2021.
And she masterfully dodged a question regarding 5nm vs 7nm split for 2021 :). I thought that was brilliant, because you could infer some things based on that.
 

moinmoin

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Jun 1, 2017
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Well not hard to have those growth numbers when you go from near 0%/death to matching and now leading in your area.

Hopefully they will not make the same mistake they did before by taking their foot off the gas pedal. Intel is down but they have a LOT of money and pull.
Indeed, it's easier to have a couple isolated quarters with huge growth from near zero than having a steady growth. And in the past said average 25% were the target across the next 5 years iirc. So it's not in AMD's interest to fuel higher expectations for future quarters with numbers like for this quarter (which may well be once a console gen due to preparations for the upcoming launch of next gen consoles included in that quarter).
 

Hitman928

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Apr 15, 2012
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Indeed, it's easier to have a couple isolated quarters with huge growth from near zero than having a steady growth. And in the past said average 25% were the target across the next 5 years iirc. So it's not in AMD's interest to fuel higher expectations for future quarters with numbers like for this quarter (which may well be once a console gen due to preparations for the upcoming launch of next gen consoles included in that quarter).
Yes, the console ramp definitely helped the Y/Y and Q/Q numbers and will do so next quarter as well. But as mentioned, the gross margin numbers staying level shows growth in high value products as well. In the 4th quarter, console revenue should be ramping down but they still project a ~7% increase in revenue again showing growth in non-console markets. It will be interesting to see of AMD gives full 2021 year guidance in January.
 

guachi

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Nov 16, 2010
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Interesting that graphics revenue was down slightly year over year. CPU revenue must have been amazing.

Looks like Apple moving to 5nm has given AMD room to grow dramatically as I think AMD is using a lot of the 7nm formerly used by Apple.
 
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Panino Manino

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Jan 28, 2017
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It's unrelated, I know, but talking about money I was thinking if someone could sue AMD because of that "mountain bike".
Going by Gamer Nexus review it's an actual life hazard.
How crazy that AMD's amazing streak of success and broken like this.
 

Doug S

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Feb 8, 2020
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Interesting that graphics revenue was down slightly year over year. CPU revenue must have been amazing.

Looks like Apple moving to 5nm has given AMD room to grow dramatically as I think AMD is using a lot of the 7nm formerly used by Apple.
It isn't like the A14 being built on N5 has stopped Apple's demand for N7/N7P used to build the A12 & A13 that are still used in shipping iPhones, as well as other products.

TSMC doesn't build all the capacity for a new process on day one. They have a lot more 7nm capacity today than they had when Apple and Huawei shipped the first 7nm chips in their products. Likewise they will have a lot more 5nm capacity in two years than they have today.
 

Hitman928

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Apr 15, 2012
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Some quotes from the earnings call:

Lisa Su said:
In Graphics, revenue declined year-over-year, and increased sequentially as we prepare to launch our next generation Radeon GPUs this quarter. Mobile GPU sales grew by a double-digit percentage year over year, led by solid demand for our Radeon Pro 5000 M series powering Apple's MacBook Pro.
Lisa Su said:
Data center GPU revenue increased sequentially and year-over-year based on new cloud-based visual computing wins. Our Radeon Instinct accelerators continue gaining momentum in the HPC market. Recently announced wins include Australia's most powerful supercomputer, as well as the new LUMI supercomputer in Finland that is expected to deliver over 550 petaflops of peak performance.
AMD changing their forecast in console chip sales from ramping down in 4Q to increasing volume due to higher than expected demand.
Lisa Su said:
We now expect Semi-Custom shipments and revenue to increase sequentially in the fourth quarter based on strong demand.
Lisa Su said:
Turning to Server, we set a record for quarterly Server processor revenue as sales grew a double-digit percentage sequentially and more than doubled year-over-year, driven by growing cloud and enterprise adoption. In cloud, the largest hyperscale customers expanded their second-gen EPYC processor deployments across both their internal infrastructures and publicly-available instances.

In the third quarter, Microsoft Azure expanded their AMD offerings to 18 regions and nine availability zones and launched new data analytic services powered by second-gen EPYC processors that deliver 30% better performance than competitive offerings. Amazon rolled out multiple new high-performance AMD instances and Google announced general availability of their cloud confidential virtual machines powered exclusively by second-gen EPYC processors.

Enterprise data center adoption continue to accelerate as well. We added multiple Fortune 1000 customer wins in the quarter across key verticals, including financial services, automotive and EDA
 

moinmoin

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Slide 4: NOOOOOooooooo... the "leadership" bug has infected AMD as well now. :sob:

Slide 7:
- ASP is lower y/y due to a higher mix of mobile processor sales? This is curious considering Renoir goes up to 8 cores whereas 12/16c on desktop should be relatively niche and not affect ASP that much. Either 8c Renoir is too cheap or AMD didn't manage to ship enough 8c Renoir chips. I guess it's the latter?
- Record quarterly Client processor revenue driven by highest ever quarterly mobile processor unit shipments and revenue, and it could have been more going by the constant shortage. It's quite interesting that in the laptop market AMD managed the fasted turnaround of all markets (with friendly support by Covid no doubt).

Slide 8: Expect semi-custom shipments and revenue to increase q/q in Q4’20 based on strong demand. Kind of odd that console demand would have been both underestimated and corrected before the launch, probably influenced by Covid again.
 

IEC

Elite Member
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Jun 10, 2004
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I don't own any AMD stock so I'm not invested in their financial performance either way, but it's good that they are making money.

To think they were on the brink of bankruptcy not too long ago... Lisa Su and crew did a fine job righting the ship. Now it's time to see if they can keep up the 15%+ IPC gain pace.
 

mxnerd

Diamond Member
Jul 6, 2007
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It's unrelated, I know, but talking about money I was thinking if someone could sue AMD because of that "mountain bike".
Going by Gamer Nexus review it's an actual life hazard.
How crazy that AMD's amazing streak of success and broken like this.
It's a terrible, trerrible bike. AMD should recall the bike and refund the money.

 
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