AMD's Quarterly Earnings for Q2 2020 are now available, detailing their financial performance during the months of April to June 2020. Revenue hit $1.93bn last quarter and operating income reached $177m under challenging conditions due to ongoing coronavirus mitigations that in turn increased operating expenses. Overall confidence in their position has led AMD to raise their full-year revenue outlook for FY2020.
Year on year revenue growth of 26% has been primarily driven by the Computing and Graphics segment, while quarter-on-quarter growth was market by improvements in the fortunes of Enterprise, Embedded and Semi-Custom segment revenue. You might recall that Q2 2019 was the quarter prior to the debut of 3rd Generation Ryzen 3000-series CPUs, X570 motherboards and Radeon 5000-series graphics hardware, which explains much of the bump in numbers from a year ago.
The Computing and Graphics segment revenue was $1.37 billion, up 45 percent year-over-year but down 5 percent quarter-over-quarter. Quarter over quarter falls were primarily due to a dip in Radeon GPU sales numbers. EPYC meanwhile continues to do well, offsetting falls in custom and semi-custom product revenue.
Outlook Summary
For the third quarter of 2020, AMD expects revenue to be approximately $2.55 billion, plus or minus $100 million, an increase of approximately 42 percent year-over-year and 32 percent sequentially.
The year-over-year and sequential increases are expected to be primarily driven by Ryzen and EPYC processor sales and next generation semi-custom products*. AMD expects non-GAAP gross margin to be approximately 44 percent in the third quarter of 2020. Gross margin is expected to increase year-over-year primarily driven by Ryzen and EPYC processor sales. AMD now expects 2020 revenue to grow by approximately 32 percent compared to 2019 driven by strength in PC, gaming and data center products. Non-GAAP gross margin is expected to be approximately 45 percent.
For the third quarter of 2020, AMD expects revenue to be approximately $2.55 billion, plus or minus $100 million, an increase of approximately 42 percent year-over-year and 32 percent sequentially.
The year-over-year and sequential increases are expected to be primarily driven by Ryzen and EPYC processor sales and next generation semi-custom products*. AMD expects non-GAAP gross margin to be approximately 44 percent in the third quarter of 2020. Gross margin is expected to increase year-over-year primarily driven by Ryzen and EPYC processor sales. AMD now expects 2020 revenue to grow by approximately 32 percent compared to 2019 driven by strength in PC, gaming and data center products. Non-GAAP gross margin is expected to be approximately 45 percent.
AMD are likely referring to upcoming next-generation consoles including when referring to 'next-generation semi-custom products'.
Roadmap
A subsequent corporate presentation outlined AMD's roadmap for 2021 and beyond. It confirmed that Zen 3 will be a 7nm product lineup alongside RDNA 2, with Zen 4 debuting on 5nm prior to the end of 2021. RDNA 2 graphics architecture will also ship with support for Ray-tracing and Variable Rate Shading (as expected due to prior console feature announcements).
AMD will also be releasing 7nm compute processors based on their new Compute-DNA (CDNA) architecture, a GPU architecture variant tailored to data centre applications. It will feature an optimised implementation of 2nd generation Infinity Architecture for high-speed communication between multi-node CPU servers and n-way GPUs.
The presentation did not spell out release dates, but indicate that AMD will be maintaining a process lead through a transition to 5nm on much of their product range before the end of 2021. None of the above should come as a shock to those who tuned into the equivalent Q1 presentation.
SOURCE: Slides via @chiakokhua
