AMD reports its highest revenue in 14 years, projects strong Q4 on Ryzen sales

Ryzen 7, Ryzen 9, and the Epyc server processor are driving AMD's sales right now.

Credit: Mark Hachman / IDG

If there was a message underlying AMD chief executive Lisa Su’s comments after the company’s third-quarter earnings call, it’s this: AMD is not a low-end supplier any more.

About a week or so after Intel reported an unexpectedly prolonged processor shortage in its own earnings report, Su was asked whether AMD would step in, especially at the low end of the PC market. Though she said she saw “pockets” of weaker demand in the low end, her response was telling: “It’s not a significant driver of the business,” she said.

AMD reported third quarter profits of $120 million, up nearly fourfold from the $35 million in profits the company reported a year ago. Revenue climbed to $1.80 billion, which AMD noted represented the highest mark since the fourth quarter of 2005, hearkening back to the days of the Athlon 64 X2. 

The company’s outlook was the unexpected highlight. Normally a footnote to an earnings call—with the exception of Wall Street investors—AMD predicted that fourth-quarter sales would climb a whopping 48 percent compared to a  year ago, to $2.1 billion, driven by Ryzen, its Epyc server processor, and Radeon sales.

Right now, AMD’s story is a simple one. AMD’s Computing and Graphics segment is firing on all cylinders, with revenue up 36 percent year over year to $1.28 billion. Desktop sales outpaced mobile, but both grew nicely, Su said. GPUs declined slightly, though that was due to a slowdown in datacenter GPUs that Su believed would reverse course in the fourth quarter.

AMD’s Enterprise, Embedded, and Semi-Custom business lagged, down 27 percent to $525 million. While AMD noted that Epyc processor sales were up, the lull in anticipation of the next-generation Xbox and PlayStation consoles has consumers waiting. That dragged down the business unit as a whole. A year from now, when the consoles launch, AMD expects semi-custom chips to be a strong business once again, Su said.

The key, though, is that customers are demanding high-end products. On the client side, the highest customer demand is for Ryzen 7 and Ryzen 9 chips, Su said. In the Epyc server business, AMD is also seeing a richer mix of higher-margin products, specifically those with 48 and 64 cores. The ramp into 7nm manufacturing continues apace, with AMD’s major product lines transitioning “very quickly,” Su said.

Next up? AMD’s third-generation Threadripper and the Ryzen 3950X—a bit late, but indicative of the demand for higher-end products that is driving AMD’s revenue projection. Su didn’t mention any anticipated problems manufacturing either chip in sufficient quantity, though that’s one of the reasons the 3950X was delayed. For now, however, the scarlet letter—S, for “shortage”—hangs on Intel’s chest, not AMD’s.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Mark Hachman

Mark Hachman

PC World (US online)
Show Comments

Cool Tech

Toys for Boys

Skywatcher Dobsonian 8″ Collapsible Telescope

Learn more >

Family Friendly

Whodunnit™ Duo-Scope MFL-007 Microscope Kit

Learn more >

Stocking Stuffer

Logitech Ultimate Ears Wonderboom 2 Bluetooth Speaker

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?