AMD reports non-GAAP Q1 revenue grew 55% to $5.3B

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Superior Micro Gadgets reported its revenues and earnings for the primary quarter ended March 31 beat expectations, with income rising 55% to $5.3 billion on a non-GAAP foundation (excluding Xilinx outcomes).

Non-GAAP internet revenue for the quarter was $1.6 billion, or 1.13 cents a share, beating expectations of 91 cents a share on a non-GAAP foundation. AMD’s shares are up 4.6% to $95.39 a share in after-hours buying and selling.

The Santa Clara, California-based firm continues to learn from its extremely aggressive Zen and Zen 2 architectures for processors, which may generate 50% or extra higher efficiency per clock cycle than the earlier technology. This structure put AMD forward of Intel in efficiency for the primary time in a decade, and it has helped the perennial No. 2 PC chipmaker right into a fast-growing contender in opposition to Intel.

Previously couple of years, Intel has additionally came upon each the chip design aspect and in manufacturing, the place it has misplaced its technological benefit to rivals corresponding to TSMC, which makes each processors and graphics chips for AMD. Consequently, AMD has been making historic market share beneficial properties for the previous three years.

What’s attention-grabbing is AMD has been making these beneficial properties amid a historic chip scarcity pushed by the provision whipsaw from the pandemic and unprecedented demand for digital items.

Excluding Xilinx, AMD had report quarterly income of $5.3 billion, non-GAAP gross margin of 53% and non-GAAP working margin of 30%. On a GAAP foundation, together with Xilinx, revenues have been $5.9 billion, up 71%.

“The primary quarter marked a big inflection level in our journey to scale and remodel AMD as we delivered report income and closed our strategic acquisition of Xilinx,” stated AMD CEO Lisa Su, in a press release. “Every of our companies grew by a big double-digit proportion year-over-year, led by EPYC server processor income greater than doubling for the third straight quarter. Demand stays sturdy for our management merchandise, with our elevated full-year steerage reflecting greater AMD natural development and the addition of the rising Xilinx enterprise.”

Intel, in the meantime, has been doubling down on its manufacturing investments as a option to keep aggressive and benefit from the chip growth and provide scarcity.

Q1 2022 outcomes

AMD CEO Lisa Su is a keynote speaker for CES 2021.
AMD CEO Lisa Su was a keynote speaker at Computex 2021.

As famous, non-GAAP income was $5.3 billion, up 55% year-over-year and 10% quarter-over-quarter. That was pushed by greater income in pc and graphics in addition to enterprise, embedded, and semi-custom segments.

Analysts anticipated AMD to report earnings per share of 91 cents on revenues of $5.52 billion for the primary quarter.

For the present second quarter, analysts anticipate AMD to report earnings of 99 cents on income of $6.38 billion.

Non-GAAP internet revenue was $1.6 billion in comparison with $642 million a yr in the past and $1.1 billion within the prior quarter.

Quarterly monetary phase abstract

AMD processor
AMD processor

Computing and graphics phase income was $2.8 billion, up 33% from a yr in the past and up 8% from the earlier quarter. The will increase have been pushed by Ryzen and Radeon chip gross sales. The quarter-over-quarter improve was pushed by Ryzen processor gross sales. Shopper processor common promoting costs have been up yr over yr, as have been graphics processing unit (GPU) chip gross sales.

Enterprise, embedded, and semi-custom phase income was $2.5 billion, up 88% from a yr in the past and up 13% from the earlier quarter.

For the outlook, AMD expects Q2 2022 income to hit $6.5 billion, plus or minus $200 million, up 69% from a yr in the past and up 10% from the prior quarter.

For the complete yr, AMD estimates income might be $26.3 billion, up 60% from a yr earlier, and gross margins of 54%.

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