AMD shocks the world by only losing $16m

Ryzen gets desktops back in the black


AMD wasn't able to turn a profit this quarter, but analysts are bullish on the chipmaker's solid Ryzen CPU sales.

The world's other x86 chipmaker topped estimates with a 21 per cent jump in revenues, but still couldn't quite manage to get into the black. For the FY2017 Q2 period, ended July 1:

  • Revenues of $1.22bn were up 19 per cent from $1.03bn in Q2 2016, and topped analyst estimates of $1.16bn.
  • Net loss was $16m GAAP, thanks to restructuring and stock expenses. (Non-GAAP accounting has AMD turning a $19m net income for the quarter. Last year's quarter saw a non-GAAP loss of $40m.)
  • Earnings per share (non-GAAP) were $0.02, topping analyst estimates of zero.
  • Ryzen processor sales helped the Computing and Graphics segment log revenues of $659m, up 51 per cent from last year's quarter and good enough for a $7m operating income. Ryzen is AMD's new Zen architecture in desktop form: the Ryzen 7 and 5 families launched in March, with the Pro group following at the end of June.
  • Enterprise, Embedded and Semi-Custom segment revenues of $563m were down five per cent year-over-year. This was blamed on low semi-custom (games console) sales. Meanwhile, AMD's Epyc server chips, also based on Zen, have only just launched.

Computing and Graphics segment returns were a particular point of pride for AMD, which says the $7m operating income was the group's first quarterly profit in some three years. By contrast, in fiscal year 2016 Computing and Graphics lost $81m in Q2.

"Our Ryzen desktop processors, Vega GPUs, and EPYC data center products have received tremendous industry recognition," said AMD CEO Dr Lisa Su.

"We are very pleased with our improved financial performance, including double-digit revenue growth and year-over-year gross margin expansion on the strength of our new products."

Su also noted that the graphics hardware business saw a boost from sales to crypto-currency miners, and that in some places the demand is leading to dwindling inventories.

As a result, Su said, AMD is focusing on getting more GPU chips to companies that make graphics cards in hopes of keeping its core gaming markets awash with chips, lest they all be bought up by crypto-miners.

AMD believes the revenue boost won't be limited to this quarter, either. The chipmaker is updating its full-year guidance from "low double digits" growth to "high teens" year-over-year improvement.

Investors took a shine to the news, as shares in AMD were up 7.8 per cent in after-hours trading at $15.22 per share. ®

Similar topics


Other stories you might like

  • AMD touts big datacenter, AI ambitions in CPU-GPU roadmap
    Epyc future ahead, along with Instinct, Ryzen, Radeon and custom chip push

    After taking serious CPU market share from Intel over the last few years, AMD has revealed larger ambitions in AI, datacenters and other areas with an expanded roadmap of CPUs, GPUs and other kinds of chips for the near future.

    These ambitions were laid out at AMD's Financial Analyst Day 2022 event on Thursday, where it signaled intentions to become a tougher competitor for Intel, Nvidia and other chip companies with a renewed focus on building better and faster chips for servers and other devices, becoming a bigger player in AI, enabling applications with improved software, and making more custom silicon.  

    "These are where we think we can win in terms of differentiation," AMD CEO Lisa Su said in opening remarks at the event. "It's about compute technology leadership. It's about expanding datacenter leadership. It's about expanding our AI footprint. It's expanding our software capability. And then it's really bringing together a broader custom solutions effort because we think this is a growth area going forward."

    Continue reading
  • Intel says Sapphire Rapids CPU delay will help AMD catch up
    Our window to have leading server chips again is narrowing, exec admits

    While Intel has bagged Nvidia as a marquee customer for its next-generation Xeon Scalable processor, the x86 giant has admitted that a broader rollout of the server chip has been delayed to later this year.

    Sandra Rivera, Intel's datacenter boss, confirmed the delay of the Xeon processor, code-named Sapphire Rapids, in a Tuesday panel discussion at the BofA Securities 2022 Global Technology Conference. Earlier that day at the same event, Nvidia's CEO disclosed that the GPU giant would use Sapphire Rapids, and not AMD's upcoming Genoa chip, for its flagship DGX H100 system, a reversal from its last-generation machine.

    Intel has been hyping up Sapphire Rapids as a next-generation Xeon CPU that will help the chipmaker become more competitive after falling behind AMD in technology over the past few years. In fact, Intel hopes it will beat AMD's next-generation Epyc chip, Genoa, to the market with industry-first support for new technologies such as DDR5, PCIe Gen 5 and Compute Express Link.

    Continue reading
  • AMD bests Intel in cloud CPU performance study
    Overall price-performance in Big 3 hyperscalers a dead heat, says CockroachDB

    AMD's processors have come out on top in terms of cloud CPU performance across AWS, Microsoft Azure, and Google Cloud Platform, according to a recently published study.

    The multi-core x86-64 microprocessors Milan and Rome and beat Intel Cascade Lake and Ice Lake instances in tests of performance in the three most popular cloud providers, research from database company CockroachDB found.

    Using the CoreMark version 1.0 benchmark – which can be limited to run on a single vCPU or execute workloads on multiple vCPUs – the researchers showed AMD's Milan processors outperformed those of Intel in many cases, and at worst statistically tied with Intel's latest-gen Ice Lake processors across both the OLTP and CPU benchmarks.

    Continue reading
  • Apple’s M2 chip isn’t a slam dunk, but it does point to the future
    The chip’s GPU and neural engine could overshadow Apple’s concession on CPU performance

    Analysis For all the pomp and circumstance surrounding Apple's move to homegrown silicon for Macs, the tech giant has admitted that the new M2 chip isn't quite the slam dunk that its predecessor was when compared to the latest from Apple's former CPU supplier, Intel.

    During its WWDC 2022 keynote Monday, Apple focused its high-level sales pitch for the M2 on claims that the chip is much more power efficient than Intel's latest laptop CPUs. But while doing so, the iPhone maker admitted that Intel has it beat, at least for now, when it comes to CPU performance.

    Apple laid this out clearly during the presentation when Johny Srouji, Apple's senior vice president of hardware technologies, said the M2's eight-core CPU will provide 87 percent of the peak performance of Intel's 12-core Core i7-1260P while using just a quarter of the rival chip's power.

    Continue reading
  • Microsoft fixes under-attack Windows zero-day Follina
    Plus: Intel, AMD react to Hertzbleed data-leaking holes in CPUs

    Patch Tuesday Microsoft claims to have finally fixed the Follina zero-day flaw in Windows as part of its June Patch Tuesday batch, which included security updates to address 55 vulnerabilities.

    Follina, eventually acknowledged by Redmond in a security advisory last month, is the most significant of the bunch as it has already been exploited in the wild.

    Criminals and snoops can abuse the remote code execution (RCE) bug, tracked as CVE-2022-30190, by crafting a file, such as a Word document, so that when opened it calls out to the Microsoft Windows Support Diagnostic Tool, which is then exploited to run malicious code, such spyware and ransomware. Disabling macros in, say, Word won't stop this from happening.

    Continue reading
  • Intel offers GPU management tool ahead of Ponte Vecchio debut
    It's even open source, so someone may actually use it

    With Intel poised to enter the datacenter GPU market, the chipmaker this week showed off a software platform mean to simplify management of these devices at scale at the International Supercomputing Conference in Hamburg, Germany.

    The open-source software, dubbed Intel XPU Manager, is an in-band remote management service for upgrading firmware, monitoring system utilization, and administering GPUs at the individual node level. The code is an important step as Intel prepares to compete against Nvidia, which has a mature software stack for GPUs with AMD working hard to get its software straight for GPU and CPU.

    XPU Manager is a low-level management interface that runs in Kubernetes and is designed to be integrated into existing cluster management and schedulers using RESTful APIs. It also supports local management via the CLI and is validated for use on Ubuntu 20.04 or Red Hat Enterprise Linux 8.4.

    Continue reading
  • Nvidia taps Intel’s Sapphire Rapids CPU for Hopper-powered DGX H100
    A win against AMD as a much bigger war over AI compute plays out

    Nvidia has chosen Intel's next-generation Xeon Scalable processor, known as Sapphire Rapids, to go inside its upcoming DGX H100 AI system to showcase its flagship H100 GPU.

    Jensen Huang, co-founder and CEO of Nvidia, confirmed the CPU choice during a fireside chat Tuesday at the BofA Securities 2022 Global Technology Conference. Nvidia positions the DGX family as the premier vehicle for its datacenter GPUs, pre-loading the machines with its software and optimizing them to provide the fastest AI performance as individual systems or in large supercomputer clusters.

    Huang's confirmation answers a question we and other observers have had about which next-generation x86 server CPU the new DGX system would use since it was announced in March.

    Continue reading

Biting the hand that feeds IT © 1998–2022