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Advanced Micro Devices CEO Lisa Su stated the organization should really be capable to develop and achieve share in spite of the general semiconductor business shortage, and that the shortage should really subside somewhat in 2022.
“I’m extremely pleased with our execution as our business accelerated in the second half of the year,” Su stated in an analyst get in touch with today.
Su made the remarks throughout an earnings get in touch with for the second quarter ended June 30. In the quarter, AMD exceeded expectations with income increasing 99% to $3.85 billion and net revenue hitting $778 million.
“Our business performed exceptionally well in the second quarter as strong execution and growing customer preference for our high-performance products generated significant market and financial momentum,” Su stated. “We saw very strong demand across all of our businesses.”
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Both Ryzen mobile shipments and graphics chip revenues doubled more than the previous year, and typical promoting costs rose as effectively.
Su noted that the organization had gained marketplace share in processors for 5 quarters in a row, and it had large wins for its Epyc processors in all the things from datacenter computer systems to supercomputers. She stated more than one hundred Epyc-based styles are coming from large prospects.
The Santa Clara, California-based organization has had a fantastic run on momentum behind its Zen and Zen 2 architectures, which can create 50% or more superior functionality per clock cycle than the prior generation. This architecture place AMD ahead of Intel in functionality for the initially time in a decade, and it has helped turn the perennial No. 2 Computer chip maker into a rapid-increasing contender against Intel. Su noted that Epyc processors grew 5 occasions in the best 500 list of the quickest supercomputers, and AMD had half of the 58 newly listed systems.
Intel, meanwhile, has had stumbles not only on the chip style side but also in manufacturing, exactly where it has lost its technological benefit to rivals such as TSMC, which tends to make each processors and graphics chips for AMD. As a outcome, AMD has been creating historic marketplace share gains for the previous 3 years. What’s fascinating is AMD has been creating these gains amid a historic chip shortage driven by the provide whipsaw from the pandemic and unprecedented demand for electronic goods.
For 2021, AMD is projecting income development of about 60%, up from the 50% previously anticipated. Gross margins for the year will be about 48%. Su stated that the organization has been working with the general chip shortage and expects to be capable to develop in 2021, and it expects circumstances for the common shortage will strengthen in 2022.
Su noted that semi-custom chips will advantage from the December launch of Valve’s Steam Deck, a hybrid console that is a challenger for the Nintendo Switch.
“We remain on-track to launch next-generation products in 2022, including our Zen 4 processors built with industry-leading 5nm process technology and our RDNA 3 GPUs,” Su stated.
She stated the Milan-based Epyc 3 processors have been received effectively by prospects, in particular amongst cloud prospects as opposed to enterprise. In the second half of the year, she expects Epyc 3 processor shipments will overtake the earlier generation Epyc 2 processor shipments. Su stated cloud demand will advantage from 50 new AMD-powered situations powered by Amazon Web Services, Microsoft Azure, Google, Tencent, and Alibaba.
She also stated Asus, HP, MSI, and Lenovo program to bring AMD Advantage notebooks more than the marketplace as AMD expands its presence in the gaming laptop marketplace.
“The datacenter business will continue to grow in the second half of the year, and it will be a larger percentage of our overall revenue,” Su stated.
Intel announced its larger investments in manufacturing yesterday. Asked if that could influence AMD’s organization, Su stated that AMD expects a lot of development for its server-based organization and added, “We feel good about where we are positioned. It’s a very competitive market.”
She stated, “We’re going to fight for every socket.”
As for AMD’s pending $35 billion acquisition of Xilinx, Su noted that regulators have granted approvals in several jurisdictions, like the European Union and the United Kingdom.