AMD Earnings - Highlights

A few highlights that drew my attention were

Strong operating leverage:

  • “Annual revenue grew 68% to a record $16.4 billion, and we expanded gross margin for the sixth straight year. We also delivered record net income and EPS, both of which more than doubled year-over-year.”

Margin Expansion:

  • “Gross margin was 48%, up 370 basis points from the prior year, driven by the strength and competitiveness of our EPYC, Radeon and Ryzen processors. Operating expenses were 24% of revenue compared to 28% in 2020.”

Outlook for the next quarter:

  • First quarter 2022 revenue is expected to be approximately $5 billion, plus or minus $100 million, an increase of approximately 45% year-over-year and approximately 4% quarter-on-quarter. The year-over-year increase is expected to be driven by growth across all businesses. The quarter-on-quarter increase is expected to be driven by the higher server and client revenue

Cloud and Server Growth:

  • “In the cloud, revenue more than doubled year-over-year as the largest providers expanded internal deployments and more than 130 new AMD-powered instances launched from Amazon Web Services, Alibaba, Google, IBM, Microsoft Azure and others.”

Revenue Trend:

Summary:

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Excellent summary. Looks like a good sign for cloud growth as well.

Thanks! I concur. Google said recently that they are ramping up their CAPEX spending and would devote the majority of it to servers. Facebook will be a large spender, given their metaverse ambitions.

Their pricing clout is unrivalled. It explains why their profit margins have remained stable during the pandemic.

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Informative Highlights!