Advanced Micro Devices Inc. or AMD in its latest Q3 2020 earnings report announced record-breaking revenues and the best single quarter in history of the company. Major segments driving growth for the company are their advanced PCs and Graphic cards. The company’s latest earnings report stated $2.8Bn in revenue, a 56% jump over the same quarter a year ago. This is more impressive as the company’s Q2 was record-breaking as well.
As a result of some stellar sales, the company’s gross profit has increased 58% year-over-year (YoY). The company’s net income now stands at $390 million which is a a 225% increase from the $120M they reported last year.
Getting into the specifics, the earnings report noted that the Computer and Graphics segment revenues were up 31% YoY and 22% QoQ to $1.67 Billion. This growth was fuelled by increased sales of Ryzen processors. More importantly, AMD’s desktop and notebook CPU shipments received a huge impetus which were likely buoyed by a worldwide lockdown due to the pandemic. On the other hand, graphics revenues were a dampener on the balance sheet as AMD’s current-generation RX 5000 products approaches the end of their lifecycle. However, with the launch of the RX 6000 getting close, things should change for the better in the coming quarter.
The company’s enterprise division also saw good growth as everything from EPYC processors to console SoCs sold well as AMD reported a 116% YoY and 101% QoQ increase in revenue, totalling to $1.13 Billion. Like the graphics division, the enterprise division will also see the introduction of new products like their Zen 3 architecture-based EPYC “Milan” processors, which will begin shipping this quarter.
These record numbers are a stark contrast to Intel’s dwindling margins as the company reported 4% drop in revenues. And with Nvidia struggling to match the demand for the RTX 30 series GPUs as well as the new advance products AMD has in the pipeline, the coming quarter looks more promising than ever for AMD.