Advanced Micro Devices reported better-than-expected revenues for its fourth-quarter outcomes for the interval ended December 31, but it surely’s nonetheless onerous to inform whether it is gaining a lot floor on its arch rival Intel, which additionally reported a very good fourth quarter.
The firm was anticipated to get a lift from graphics processing unit (GPU) gross sales associated to cryptocurrency mining, as high-end graphics playing cards are getting used en masse to generate extra models of free cryptocurrency. That spike in demand is expounded to the loopy rise of Bitcoin, which reached $20,000 per Bitcoin in December, solely to fall to only above $10,000 lately.
In reality, throughout the quarter, AMD’s Computing and Graphics group posted appreciable development, but it surely’s onerous to inform precisely if the GPUs or Ryzen central processing models (CPUs) had been accountable for the massive beneficial properties.
Analysts had been anticipating AMD to report adjusted non-GAAP earnings of 5 cents a share, with revenues of $1.4 billion. Revenues got here in at $1.48 billion, up 34 % from a yr earlier. Earnings per share had been 8 cents.
“2017 marked a key inflection level for AMD as we re-shaped our product portfolio, delivered 25 % annual income development, expanded gross margin and achieved full-year profitability,” mentioned AMD CEO Lisa Su, in an announcement. “We are much more enthusiastic about 2018 as we launch our subsequent wave of high-performance merchandise and proceed to place AMD as one of many premier long-term development corporations within the know-how business.”
Computing and Graphics phase income elevated 60 % from a yr in the past resulting from sturdy gross sales of Radeon graphics chips and Ryzen processors. Enterprise, embedded, and semi-custom income grew 3 %, pushed by Epyc knowledge middle processors based mostly on the Zen structure, which may ship greater than 50 % extra processing per clock cycle than the earlier era.
For the primary quarter of 2018, AMD expects income to be roughly $1.55 billion, plus or minus $50 million, a rise of 32 % year-over-year, primarily pushed by the power of the ramp of latest Ryzen, GPU and Epyc merchandise.
The crypto miners are AMD’s buddies for now. AMD additionally had aggressive desktop processors with the launch of its Zen-based Ryzen chips in 2017. Those chips are being utilized in every little thing from gaming PCs to high-end workstations, and AMD has plans to roll them out additional in markets resembling laptops. There’s additionally excessive demand for AMD chips used for synthetic intelligence and machine studying functions, and it continues to provide processors for video sport consoles such because the Xbox One sequence and the PlayStation 4.
“AMD crushed their This fall 2017 earnings report. The present quarter was pushed by power in Ryzen and Radeon Graphics and issues appear to be clicking into gear as you’d anticipate from the product worth proposition,” mentioned analyst Patrick Moorhead of Moor Insights & Strategy. “Computing and Graphics was up an eye-popping 60 %. It usually takes three quarters for something within the knowledge middle to kick in and we’re seeing proof of Epyc and knowledge middle graphics hitting, all goodness for AMD.”
Moorhead added, “I anticipate AMD to do even higher in 2018 as Ryzen cell and Ryzen with built-in graphics shall be available. Epyc and knowledge middle Radeon graphics may have one more month to bake and I’m anticipating some greater outcomes right here subsequent quarter.”
Moorhead believes that AMD is gaining floor on Intel in desktop CPUs. But it’s not clear if AMD is gaining on Intel and Nvidia in graphics.
This article sources info from VentureBeat