In the Computing and Graphics business, Intel’s $ 1.12 billion revenue can almost double revenue. The prospects are also very good in the next three months. In after-hours trading, AMD’s share price rises by nine percent.
Intel competitor AMD has completed the first fiscal quarter outstanding. The manufacturer of PC processors and graphics chips reported sales of $ 1.65 billion, which represents an increase of 40 percent over the previous year. The very good numbers caused the price of AMD shares in after-hours trading to rise by nine percent.
Since AMD mixes the revenues of processors and graphics chips in the same business area Computing and Graphics, it is not clear how large the proportion of Ryzen processors in the sales increase in this area exactly. In any case, revenue in this area compared to last year increased by 95 percent to $ 1.12 billion.
By contrast, revenue in the Enterprise, Embedded and Semi-Custom segments (including game console chips) declined 12 percent to $ 532 million. This decline was partially offset by growth in Epyc server processor sales.
“The first quarter was a great start to 2018 with 40 percent year over year growth,” said AMD boss Lisa Su. “The acceptance of our new, high-performance products for PCs, games and data centers continues to increase. We are excited about our long-term roadmaps and focus on sustainable revenue growth and profitability. ”
A few days ago, AMD unveiled the second generation of Ryzen desktop chips . It is based on the Zen + architecture and is being manufactured for the first time in a 12 nanometer process. The smaller feature sizes are designed to enable higher speeds, reduce energy consumption by up to 11 percent, and deliver 16 percent more power while maintaining the same power consumption compared to the first-generation 14-nanometer chips.
Meanwhile, AMD has launched Ryzen-based products in all major market segments. Su expects business to perform well in the second quarter. It expects OEMs to bring 25 new Ryzen-based consumer and commercial notebooks to market. By the end of the year, a total of 60 Ryzen-based systems will be available.
Former AMD executive Patrick Moorhead, who has left AMD in 2011 and has since worked as an analyst, sees AMD’s future as equally positive: “AMD’s strong revenue growth of 40 percent year over year translates into double-digit sales growth for the third consecutive year. The increase was driven by sales of AMD’s Ryzen Client CPU and APU product line in desktops and notebooks. I expect AMD to grow even more in the next quarter, based on the second generation of the Ryzen desktop CPU, the increased adoption of Ryzen Mobile notebooks and the continued growth of Epyc Server implementations. “
