AMD Q3: revenue of $4.31B, up 54% YoY, Computing and Graphics revenue of $2.4B, up 44% YoY, Enterprise, Embedded and Semi-Custom revenue of $1.9B, up 69% YoY
Tiernan Ray / ZDNet : Source: Advanced Micro Devices, Inc. .
Context & Ripple Effects
AMD entered Q3 after EPYC-driven Enterprise, Embedded and Semi-Custom growth in Q1 and a Q2 in which that segment grew 183% year over year. Q3 extends the revenue expansion across both major segments, though their year-over-year growth rates are lower than in the preceding Q2 report.
First-order effects
- AMD's Q3 revenue reached $4.31B, with Computing and Graphics contributing $2.4B and Enterprise, Embedded and Semi-Custom contributing $1.9B.
- Enterprise, Embedded and Semi-Custom remained AMD's faster-growing major segment, rising 69% year over year versus 44% for Computing and Graphics.
Second-order effects
- Enterprise, Embedded and Semi-Custom supplied $300M of AMD's $460M sequential revenue increase from Q2, increasing its share of company revenue despite a sharp slowdown from Q2's 183% year-over-year growth rate.
- Computing and Graphics also added revenue sequentially, but its lower growth rate leaves Enterprise, Embedded and Semi-Custom as the larger contributor to AMD's incremental growth in the quarter.
Third-order effects
- If this segment mix persists, AMD's revenue trajectory becomes more dependent on enterprise, embedded and semi-custom demand than on Computing and Graphics alone, a marked change from the earlier Computing and Graphics-led quarter in 2020.
The trend: AMD's quarterly results point to a semiconductor growth mix increasingly shaped by Enterprise, Embedded and Semi-Custom revenue alongside Computing and Graphics.