AMD Q1: revenue grew 71% YoY to $5.89B, including $2.8B from Computing and Graphics, up 33% YoY, and $2.5B from Enterprise, Embedded and Semi-Custom, up 88% YoY
Hey Global Investor! Steve Dent / Engadget : AMD teases new ‘Dragon Range’ CPUs for high-end gaming laptops Dylan Martin / The Register : AMD to offer CPUs with Xilinx AI engine in 2023 Wallace Witkowski / MarketWatch : AMD hits a sales milestone and expects another one to follow as data-center strategy comes together MarketWatch : Advanced Micro Devices Inc. stock outperforms market on strong trading day Mike Wheatley / SiliconANGLE : AMD grows its revenue by 71%, brushing aside concerns of a semiconductor slowdown Ian King / Bloomberg : AMD Delivers Upbeat Forecast as It Sells More Data-Center Chips Hassan Mujtaba / Wccftech : AMD Confirms Zen 4 Powered Ryzen 7000 Raphael CPUs For Desktops In 2022, Dragon Range & Phoenix APUs For Laptops In 2023 Shanthi Rexaline / Benzinga : AMD Reports Record Performances All Around In Beat-And-Raise Q1, Stock Rallies Dean Takahashi / VentureBeat : AMD reports non-GAAP Q1 revenue grew 55% to $5.3B Tiyashi Datta / Reuters : AMD forecasts current-quarter revenue above estimates Tae Kim / Barron's Online : AMD Reports Earnings Today. Watch the Cross-Currents. Tweets: Larry Dignan / @ldignan : $AMD sales jump 71%, shrugging off concerns about PC slowdown https://www.cnbc.com/... Worth noting server chips surged too. Record Enterprise, Embedded and Semi-Custom segment revenue was $2.5 billion, up 88% year-over-year driven by higher EPYC processor revenue, Max A. Cherney / @chernandburn : AMD reported earnings a moment ago — looks like another strong set of results. Data center and console sales drove that segment, which grew 88% to $2.5 billion. It remains perennially annoying that AMD lumps those two businesses into the same bucket. https://www.cnbc.com/... @iancutress : AMD: addressing more of our customer needs with an expanded portfolio capable of more. Me: This is what these companies are doing - realising that they need more avenues of revenue in case it all goes wrong in one area. Still a pinch point in manufacturing, however. @libertyrpf : AMD with the revenue up 71%, gross margin up 660bps, and non-GAAP EPS up 117% 🤔 https://twitter.com/... Don Clark / @donal888 : Maybe the more fair gross margin comparison for AMD is with Intel's non-GAAP figure of 53.1%. But Intel projected its margin will dip to 51% in the second quarter, where AMD is predicting a rise to 54% Don Clark / @donal888 : AMD gross margin excluding Xilinx was 51%, compared to 50.4% for Intel. Can anyone remember a time it could claim better a margin? https://ir.amd.com/...
Context & Ripple Effects
AMD’s Computing and Graphics unit had already been the principal growth engine in its 2018 Q1 growth, while its 2020 results showed Ryzen-led Computing and Graphics sales continuing to rise. This quarter adds a much faster-growing Enterprise, Embedded and Semi-Custom business, explicitly tied to EPYC data-center chips.
The mix shift matters because later coverage records Data Center as AMD’s largest reported revenue segment: 2024 Q1 Data Center revenue reached $2.3B, following an earlier period in which PC-oriented Computing and Graphics supplied more of the growth.
First-order effects
- AMD enters the current quarter with revenue guidance above estimates after Q1 growth was led by $2.5B in Enterprise, Embedded and Semi-Custom revenue and supported by $2.8B in Computing and Graphics.
- AMD can pair its expanding EPYC business with planned CPUs incorporating a Xilinx AI engine, while Dragon Range extends its processor lineup into high-end gaming laptops.
Second-order effects
- The faster Enterprise, Embedded and Semi-Custom growth shifts AMD’s near-term sales mix toward data-center and embedded customers rather than relying solely on Computing and Graphics demand.
- Xilinx becomes more central to AMD’s CPU roadmap as its AI engine is slated for AMD processors, tying the acquired technology to a broader product line.
Third-order effects
- AMD’s results mark an early transition toward a more balanced processor business spanning PCs, gaming laptops, data centers and embedded systems; subsequent coverage shows data-center revenue becoming the company’s largest reported segment.
- If AMD continues integrating Xilinx capabilities into CPUs, differentiation in its processor portfolio will increasingly rest on specialized on-chip functions alongside general compute performance.
The trend: AMD is shifting from a PC-led turnaround toward a broader compute portfolio in which data-center and embedded revenue carry more of the growth.