AMD Reports Second Quarter 2021 Financial Results, 99% Growth YoY

[btarunr]

AMD (NASDAQ:AMD) today announced revenue for the second quarter of 2021 of $3.85 billion, operating income of $831 million, net income of $710 million and diluted earnings per share of $0.58. On a non-GAAP basis, operating income was $924 million, net income was $778 million and diluted earnings per share was $0.63.

"Our business performed exceptionally well in the second quarter as revenue and operating margin doubled and profitability more than tripled year-over-year," said AMD president and CEO Lisa Su. "We are growing significantly faster than the market with strong demand across all of our businesses. We now expect our 2021 annual revenue to grow by approximately 60 percent year-over-year driven by strong execution and increased customer preference for our leadership products."



Q2 2021 Results

• Revenue was $3.85 billion, up 99 percent year-over-year and 12 percent quarter-over-quarter driven by higher revenue in both the Computing and Graphics segment and Enterprise and Embedded and Semi-custom segment.
• Gross margin was 48 percent, up 4 percentage points year-over-year and 2 percentage points quarter-over-quarter. The increases were driven by a richer mix of sales, including high-end Ryzen, Radeon and EPYC processor sales.
• Operating income was $831 million compared to operating income of $173 million a year ago and $662 million in the prior quarter. Non-GAAP operating income was $924 million compared to $233 million a year ago and $762 million in the prior quarter. Operating income improvements were primarily driven by higher revenue.
• Net income was $710 million compared to $157 million a year ago and $555 million in the prior quarter. Non-GAAP net income was $778 million compared to $216 million a year ago and $642 million in the prior quarter.
• Diluted earnings per share was $0.58 compared to $0.13 a year ago and $0.45 in the prior quarter. Non-GAAP diluted earnings per share was $0.63 compared to $0.18 a year ago and $0.52 in the prior quarter.
• Cash, cash equivalents and short-term investments were $3.79 billion at the end of the quarter.
• Cash from operations was $952 million compared to $243 million a year ago and $898 million in the prior quarter. Free cash flow was a record $888 million compared to free cash flow of $152 million a year ago and $832 million in the prior quarter.
• In May 2021, the Company announced a $4 billion share repurchase program. In the second quarter, the Company repurchased 3.2 million shares of common stock for $256 million.

Quarterly Financial Segment Summary

• Computing and Graphics segment revenue was $2.25 billion, up 65 percent year-over-year and 7 percent quarter-over-quarter driven by higher client and graphics processor sales.
  • Client processor average selling price (ASP) grew year-over-year and quarter-over-quarter driven by a richer mix of Ryzen desktop and notebook processor sales.
  • GPU ASP grew year-over-year and quarter-over-quarter driven by high-end graphics product sales, including data center GPU sales.
  • Operating income was $526 million compared to $200 million a year ago and $485 million in the prior quarter. The increases were primarily driven by higher revenue.
• Enterprise, Embedded and Semi-Custom segment revenue was $1.60 billion, up 183 percent year-over-year and 19 percent quarter-over-quarter. The increases were driven by higher EPYC processor revenue and semi-custom product sales.
  • Operating income was $398 million compared to $33 million a year ago and $277 million in the prior quarter. The increases were primarily driven by higher revenue.
• All Other operating loss was $93 million compared to $60 million a year ago and $100 million in the prior quarter.

Recent PR Highlights

• AMD announced that stockholders overwhelmingly approved its acquisition of Xilinx. The proposed acquisition remains on-track to close by the end of the year.
• AMD announced a $4 billion share repurchase program. AMD expects to fund repurchases through cash generated from operations.
• The Top500 organization announced the world's fastest supercomputers. The number of AMD-powered systems on the list grew by almost five times in the past year. AMD EPYC processors power half of the 58 new systems added to the June 2021 listing.
• AMD and its technology partners announced numerous new high-performance computing systems taking advantage of AMD EPYC processors. These systems include Microsoft Azure supercomputers for UK Met Office, The Perlmutter supercomputer and The Singapore National Supercomputing Centre supercomputer.
• Google Cloud and AMD announced a new instance (T2D) based on 3rd Gen AMD EPYC processors. According to Google Cloud, by using 3rd Gen EPYC processors, T2D provides up to 56 percent better absolute performance and more than 40 percent higher price-performance for scale-out workloads compared to other cloud instances.
• AMD continued advances in industry-leading packaging innovations to push the envelope in high-performance computing with new 3D chiplet technology. This packaging breakthrough combines AMD's innovative chiplet architecture with 3D stacking using an industry-leading hybrid bond approach.
• AMD announced the AMD Advantage Design Framework designed to deliver best-in-class gaming experiences on notebook PCs by combining AMD Radeon RX 6000M Series Mobile Graphics processors, AMD Radeon Software and AMD Ryzen 5000 Series Mobile Processors with exclusive AMD smart technologies and other advanced system design characteristics.
• The adoption of AMD's high-performance "Zen" CPUs and AMD RDNA 2 GPUs expanded into new markets.
  • AMD announced Tesla is using AMD Ryzen Embedded Processors and AMD RDNA 2 based GPUs to power the infotainment system in the new Tesla Model S and Model X vehicles.
  • AMD announced 2nd Gen AMD EPYC processors are powering the new HPE Alletra 6000 storage solutions, enabling up to 3x more performance compared to previous HPE Nimble storage all flash arrays.
  • Valve announced Steam Deck, a handheld gaming console powered by a semi-custom AMD processor that can play the latest AAA PC games and access the entire Steam library on the go.
• AMD launched FidelityFX Super Resolution (FSR), a state-of-the-art spatial upscaling algorithm feature designed to boost framerates and deliver high-quality, high-resolution gaming experiences. AMD also announced that more than 40 game developers pledged support for FSR, with more expected in the future.

Current Outlook
AMD's outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.

For the third quarter of 2021, AMD expects revenue to be approximately $4.1 billion, plus or minus $100 million, an increase of approximately 46 percent year-over-year and approximately 6 percent quarter-over-quarter. The year-over-year increase is expected to be driven by growth across all businesses. The quarter-over-quarter increase is expected to be primarily driven by growth in AMD's data center and gaming businesses. AMD expects non-GAAP gross margin to be approximately 48 percent in the third quarter of 2021.

For the full year 2021, AMD now expects revenue growth of approximately 60 percent, up from prior guidance of approximately 50 percent, driven by strong growth across all businesses. AMD now expects non-GAAP gross margin to be approximately 48 percent for the full year 2021, up from prior guidance of approximately 47 percent.

View at TechPowerUp Main Site

 

[Space Lynx]

mmm nom nom bb

 

[watzupken]

This certainly will catch Intel's attention. Interesting times ahead now that Intel is firing on all cylinders to try and pull themselves ahead of competition.

 

[Space Lynx]

This certainly will catch Intel's attention. Interesting times ahead now that Intel is firing on all cylinders to try and pull themselves ahead of competition.

I know it's apples and oranges, but I just find it fascinating a company like AMD has a net gain of like 3-4 billion and its a huge huge success, but funny money like Bitcoin can go up or down in a single day and worth hundreds of billions with each swing from week to week, and its all hyperbole for Bitcoin, but AMD produces physical products with some of the best engineers on the planet...

It's kind of mindblowing really. lol

 

[64K]

It's so good to see AMD making the right decisions and a nice profit as well.

 

[Nordic]

Shocking to see a company who can't keep up with demand do so well. Shocking I say!

 

[Space Lynx]

Shocking to see a company who can't keep up with demand do so well. Shocking I say!

To be fair they were sidelined as well. Typically paper launches of new GPU's resolve themselves within two months historically speaking. Why would anyone in their right mind invest in more factories if that is the case? They never accounted for Covid nor for just PC gamer culture to take off. We used to be a very niche community. Not anymore.

 

[R0H1T]

I assume this still doesn't include Xilinx numbers? AMD can still double whatever they're making in a year's time, if not less. From the verge of bankruptcy to what $20-30 billion in revenues, the turnaround is nothing short of extraordinary!
Meanwhile at Intel
Intel Rebadges 10nm Enhanced SuperFin Node as "Intel 7," Invents Other Creative Node Names

 

[persondb]

Shocking to see a company who can't keep up with demand do so well. Shocking I say!

Of course they are going to do well, they are selling every single product they produce!

 

[Chomiq]

GPU ASP grew year-over-year and quarter-over-quarter driven by high-end graphics product sales, including data center GPU sales.

No sh#t.

 

[Deleted member 24505]

I assume this still doesn't include Xilinx numbers? AMD can still double whatever they're making in a year's time, if not less. From the verge of bankruptcy to what $20-30 billion in revenues, the turnaround is nothing short of extraordinary!
Meanwhile at Intel
Intel Rebadges 10nm Enhanced SuperFin Node as "Intel 7," Invents Other Creative Node Names

Meanwhile still making a shit ton more than AMD.

Well done to them though, hopefully their supply lines will improve which will surely help improve things.

 

[Richards]

Net income is down from q3 2020.. it shows tsmc node is expensive and eating away at net profits

 

[AnarchoPrimitiv]

Meanwhile still making a shit ton more than AMD.

Well done to them though, hopefully their supply lines will improve which will surely help improve things.

"Meanwhile still making a shit ton more than AMD"

Intel spends $13+ Billion on R&D while AMD spends less than $2 Billion, Intel is way larger, and despite all of that, AMD is still beating them, which truly is Amazing.... Name one other example where a company over 10x larger than its competitor is getting beat by that competitor. Even if AMD was 20% behind in performance vs Intel, it'd still be impressive.... Basically, Intel has literally no excuse for being whooped by AMD, they should be absolutely crushing AMD, but they're not. Also consider that AMD is competing with Nvidia who spends 2x as much on R&D as AMD while NOT having to divide their R&D budget between CPU and GPU like AMD does.... When you consider the financial realities of the situation, what AMD is doing is truly impressive.

 

[Deleted member 24505]

"Meanwhile still making a shit ton more than AMD"

Intel spends $13+ Billion on R&D while AMD spends less than $2 Billion, Intel is way larger, and despite all of that, AMD is still beating them, which truly is Amazing.... Name one other example where a company over 10x larger than its competitor is getting beat by that competitor. Even if AMD was 20% behind in performance vs Intel, it'd still be impressive.... Basically, Intel has literally no excuse for being whooped by AMD, they should be absolutely crushing AMD, but they're not. Also consider that AMD is competing with Nvidia who spends 2x as much on R&D as AMD while NOT having to divide their R&D budget between CPU and GPU like AMD does.... When you consider the financial realities of the situation, what AMD is doing is truly impressive.

Beating them how? on sales of devices shipped, No. On net income, No. So not exactly whooping Intel then are they. Amd processors might be better at the moment, but that won't be forever. We'll see how many people suddenly switch back to Intel when they have something better than Ryzen out. Oh the hypocrisy

 

[HD64G]

Those numbers mean that AMD is able to grow more and produce more and invest more on R&D. Great news for the PC, server, mobile market competition.

 

[Oberon]

Net income is down from q3 2020.. it shows tsmc node is expensive and eating away at net profits

Q3 2020: $390M
Q2 2021: $778M

 

[Imsochobo]

Meanwhile still making a shit ton more than AMD.

Well done to them though, hopefully their supply lines will improve which will surely help improve things.

If you look at it more in depth.
Intel has to use a lot of their revenue and profits for fabs, amd doesn't need to.

Also intel designs network cards and optane, and lotsa stuff.. amd doesn't.

They're actually a lot closer than numbers might suggest, but intel is still bigger no doubt, and still making profits but they're dropping and unless they can reverse the asp, margin reduction their stock going to drop a bit.

 

[Tom Sunday]

The AMD stock is still stuck as of today at $97 a share. With all this profit has Wall Street missed the memo? Should have triggered well above $110 out of the gate? Come on AMD let's make me some with money with my stock so that I can buy your product or not.