October 27 AMD reported for the third quarter of fiscal year 2020 – the past period turned out to be very successful for the chip maker and in many ways a record. We chose the main thing from the report.
Over the three-month period from July to September, AMD raised a record $ 2.8 billion, which is 56% more than in the same period a year ago, and 42% more than in the second quarter of 2020. Operating profit in annual terms increased by 58% – from $ 777 million to $ 1.230 billion. Net profit even increased by 225%, reaching $ 390 million or $ 0.32 per share.
Gross margin in annual terms increased by 1 percentage point, to 44%. The same indicator value was recorded in the second quarter of 2020.
As before, the main revenue of Advanced Micro Devices comes from sales of processors and video cards. During the reporting period, the Computing and Graphics division generated $ 1.667 billion, which is 31% more than last year and 22% more than in the second quarter of 2020. Operating income increased from $ 179 million to $ 384 million. Ryzen and EPYC processors were the main contributors to these impressive figures.
Revenue from sales of semi-custom chips, corporate and embedded solutions (Enterprise, Embedded and Semi-Custom division) increased by 115% – to $ 1.134 billion.Operating profit even increased by 327% – to $ 141 million. Microsoft and Sony consoles due out next month. EPYC (Rome) server chips also contributed to these results, but to a lesser extent.
AMD had $ 1.771 billion in cash and cash equivalents at the end of the quarter, up from $ 1.209 billion a year ago.
This time around, the stock market didn’t react to AMD’s excellent quarterly report.
In early October, AMD unveiled the Ryzen 5000 desktop processors based on Zen 3 architecture, which will be released next month and, in the first tests, are now faster than competing Intel chips, even in single-thread and games. In addition, today there will be an announcement of the Radeon RX 6000 (Navi 2X) graphics cards with the 2nd generation RDNA architecture, which will compete with the GeForce RTX 30 series. The new products should ensure good sales and continued financial growth.
For the final quarter of 2020, AMD expects revenue of $ 3.0B ± $ 100M on a 45% gross margin.
A couple of hours before the publication of the reports, AMD announced the purchase of the largest FPGA manufacturer Xilinx for $ 35 billion. This purchase is expected to increase AMD’s combined market to $ 110 billion.