AMD Tops On Earnings & Revenue
August 3, 2022
AMD reported revenue for the second quarter of 2022 of $6.6
billion, gross margin of 46%, operating income of $526 million,
operating margin of 8%, net income of $447 million and diluted
earnings per share of $0.27. On a non-GAAP basis, gross margin
was 54%, operating income was $2.0 billion, operating margin was
30%, net income was $1.7 billion and diluted earnings per share
Wall Street was looking for
an EPS of $1.03 with revenue of $6.53 billion.
For the third quarter of
2022, AMD expects revenue to be approximately $6.7 billion, plus
or minus $200 million, an increase of approximately 55%
year-over-year led by growth in the Data Center and Embedded
segments. AMD expects non-GAAP gross margin to be approximately
54% in the third quarter of 2022.
Wall Street was expecting
revenue during the current quarter to be $6.83 billion
“We delivered our eighth straight quarter of record revenue
based on our strong execution and expanded product portfolio,”
said AMD Chair and CEO Dr. Lisa Su. “Each of our segments grew
significantly year-over-year, led by higher sales of our data
center and embedded products. We see continued growth in the
back half of the year highlighted by our next generation 5nm
product shipments and supported by our diversified business
For the full year 2022, AMD
continues to expect revenue to be approximately $26.3 billion,
plus or minus $300 million, an increase of approximately 60%
over 2021 led by growth in the Data Center and Embedded
segments. AMD continues to expect non-GAAP gross margin to be
approximately 54% for 2022.
Q2 2022 Financial Summary
Revenue of $6.6
billion increased 70% year-over-year driven by growth across
all segments and the inclusion of Xilinx revenue.
Gross margin was
46%, a decrease of 2 percentage points year-over-year,
primarily due to amortization of intangible assets
associated with the Xilinx acquisition. Non-GAAP gross
margin was 54%, an increase of 6 percentage points
year-over-year, primarily driven by higher Data Center and
Embedded segment revenue.
was $526 million, or 8% of revenue, compared to $831 million
or 22% a year ago primarily due to amortization of
intangible assets associated with the Xilinx acquisition.
Record non-GAAP operating income was $2.0 billion, or 30% of
revenue, up from $924 million or 24% a year ago primarily
driven by higher revenue and gross profit.
Net income was
$447 million compared to $710 million a year ago primarily
due to lower operating income. Record non-GAAP net income
was $1.7 billion, up from $778 million a year ago primarily
driven by higher operating income.
per share was $0.27 compared to $0.58 a year ago primarily
due to lower net income and a higher share count as a result
of the Xilinx acquisition. Non-GAAP diluted earnings per
share was $1.05 compared to $0.63 a year ago primarily
driven by higher net income.
equivalents and short-term investments were $6.0 billion at
the end of the quarter and debt was $2.8 billion. AMD
repurchased $920 million of common stock during the quarter.
operations was a record $1.04 billion in the quarter,
compared to $952 million a year ago. Free cash flow was $906
million in the quarter compared to $888 million a year ago.
acquisition-related intangible assets associated with the
acquisitions of Xilinx and Pensando were $50.4 billion.
Quarterly Segment Financial Summary
announced new segments beginning the second quarter to align
financial reporting with the way AMD now manages its
business in strategic end markets.
Center segment includes server CPUs, data center GPUs,
Pensando and Xilinx data center products.
segment includes desktop and notebook PC processors and
segment includes discrete graphics processors and
semi-custom game console products.
segment includes AMD and Xilinx embedded products.
results have been conformed to the new reporting segments
for comparison purposes.
segment revenue was $1.5 billion, up 83% year-over-year
driven by strong sales of EPYC™ server processors. Operating
income was $472 million, or 32% of revenue, compared to $204
million or 25% a year ago. Operating income improvement was
primarily driven by higher revenue, partially offset by
higher operating expenses.
revenue was $2.2 billion, up 25% year-over-year driven by
Ryzen™ mobile processor sales. Client processor ASP
increased year-over-year driven by a richer mix of Ryzen
mobile processor sales. Operating income was $676 million,
or 32% of revenue, compared to $538 million or 31% a year
ago. Operating income improvement was primarily driven by
higher revenue, partially offset by higher operating
revenue was $1.7 billion, up 32% year-over-year driven by
higher semi-custom product sales, partially offset by a
decline in gaming graphics revenue. Operating income was
$187 million, or 11% of revenue, compared to $175 million or
14% a year ago. Operating income improvement was primarily
driven by higher revenue, partially offset by higher
operating expenses. Operating margin was lower primarily due
to lower graphics revenue and higher operating expenses.
revenue was $1.3 billion, up 2,228% year-over-year driven by
the inclusion of Xilinx embedded revenue. Operating income
was $641 million, or 51% of revenue, compared to $6 million
or 11% a year ago. Operating income and margin improvement
was primarily driven by the inclusion of Xilinx revenue.
operating loss was $1.5 billion as compared to $92 million a
year ago due to amortization of intangible assets largely
associated with the Xilinx acquisition.
Recent PR Highlights
At its Financial
Analyst Day, AMD
leadership roadmaps and an expanded product portfolio to
deliver its next phase of growth across the estimated $300
billion market for high-performance and adaptive computing
details on the “Zen 4” core architecture, expected to
deliver significant performance and power efficiency
improvements over the previous generation.
- The “Zen
5” core planned for 2024, which is built from the ground
up to extend performance and efficiency leadership
across a broad range of workloads.
- AMD CDNA™
3 graphics architecture featuring 3D die stacking, 4th
generation Infinity Architecture, next-generation AMD
Infinity Cache™ technology and HBM memory in a single
package to power what are expected to be the world’s
first data center APUs, AMD Instinct™ MI300
- AMD RDNA™
3 next generation graphics architecture expected to
deliver more than 50% greater performance-per-watt
compared to the prior generation.
- AMD XDNA™
technology, the foundational architecture IP from Xilinx
that consists of key technologies including the FPGA
fabric and AI Engine (AIE), which is planned to be
integrated across the AMD product lineup starting with
the “Zen 4”-architecture based “Phoenix Point” mobile
processors planned for 2023.
expanded data center CPU portfolio, including the first
AMD EPYC processor optimized for intelligent edge and
communications deployments, codenamed “Siena,” and the
“Bergamo” processors, expected to be the highest
performance server processors for cloud native computing
at their launch planned for the first half of 2023.
the acquisition of Pensando Systems in a transaction valued
at approximately $1.9 billion to expand AMD’s data center
product portfolio with a high-performance data processing
unit (DPU) and software stack. Pensando DPUs are already
deployed at scale across cloud and enterprise customers
including Goldman Sachs, IBM Cloud, Microsoft Azure and
supercomputer, powered by AMD EPYC CPUs and AMD Instinct
Accelerators, achieved number one spots on the latest
TOP500, GREEN500 and HPL-AI performance lists, an industry
first, and was the first supercomputer to surpass the
The HPC industry
continues to show rapidly growing preference for AMD
solutions, with a 95% year-over-year increase in the number
of AMD-powered systems on the TOP500 list.
computing industry continues to show growing preference for
N2D and C2D virtual machines (VMs) are enabling enhanced
security offerings with 3rd Gen AMD EPYC
- As part
of the Oracle Cloud VMware® solution product offering,
E4 Dense instances leverage AMD EPYC processors to
deliver ideal performance for hybrid cloud environments
is the first public cloud provider to deploy AMD
Instinct MI200 accelerators for large scale AI training.
the Versal™ AI Core series for the Canon Free Viewpoint
Video System to power real-time AI processing at the edge,
transforming live sports broadcasts.
the Versal Premium series with AI Engines, optimized for
signal processing-intensive applications in the aerospace
and defense and test and measurement markets.
that its Xilinx® Zynq® UltraScale+™ RFSoC is enabling 4G/5G
radio access network solutions to support the Meta
Connectivity Evenstar Program.
on the new Ryzen 7000 Series desktop processors, based on
the 5nm “Zen 4” architecture, expected to launch this fall;
the AMD Socket AM5 platform, providing advanced connectivity
for the most demanding enthusiasts and gamers; and new
“Mendocino” processors bringing together “Zen 2” cores and
AMD RDNA 2 architecture-based graphics to deliver great
everyday performance in notebooks, available from OEM
partners starting in Q4 2022.
the Radeon™ RX 6950 XT, RX 6750 XT and RX 6650 XT graphics
cards, featuring faster game clocks, faster GDDR6 memory and
enhanced software and firmware compared to