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Ryzen sales see AMD post better-than-expected Q2 results

CHIPMAKER AMD has a better second quarter than many had expected as its Ryzen desktop chips start to show signs of making an impact.

Although the firm posted a loss of $16m (around £12m) for the three month period ending June, AMD saw revenues increase 19 per cent to $1.22bn (£919m).  

This is largely thanks to AMD’s computing and graphics unit, which includes sales from the firm’s Ryzen desktop chips, which delivered second quarter sales of $659m, an increase of 51 per cent year on year, and an operating income of $7m. This time last year, AMD reported $435m in revenues from the division and losses of $81m. 

“Our second quarter results demonstrate strong growth driven by leadership products and focused execution,” said Lisa Su, AMD president and CEO. 

“Our Ryzen desktop processors, Vega GPUs, and Epyc data centre products have received tremendous industry recognition. 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.”

On Tuesday’s earnings call, Su also addressed the well-documented and ongoing shortage of graphics cards, which are being snapped up by cryptocurrency miners. She said that she doesn’t see it as a long term problem, noting that AMD will ramp up production to combat the shortage in the short term. 

AMD’s enterprise, embedded and semi-custom unit, which includes royalties made from console and server chips, saw revenue fall 5 percent to $563 million in the second quarter. This likely will ramp up going forward with Microsoft set to start shipping its Xbox One X console in November

Looking forward, AMD expects that it will report 23 per cent sequential growth in revenue in Q3. “When we look at where we are, in the progression of the Ryzen rollout, we’re still in the early innings,” Su said. 

This positive forecast isn’t surprising. During the third quarter, AMD will start increasing sales of new Ryzen chips, as well its Epyc server chips and recently-launched Vega graphics cards. µ

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