AMD Q2'2021
AMD had an amazing quarter with its revenues up by 99% YoY and its data center segment revenue up by 183% YoY
July 27 2021 was a big day in terms of number of tech companies that reported their earnings (MSFT, GOOG, AAPL, AMD, etc..). Many other companies whose primary revenue was advertising also had amazing quarterly Q2 2021 earnings (TWTR, SNAP, GOOG etc..)
What makes AMD earnings impressive is how it compares to its biggest competition / incumbent Intel.
Intel’s Q2 2021 revenue was flat YoY and more importantly Intel saw a 10% decline revenue in its Data center segment.
AMD on the other hand saw a increase of 183% in its Data center segment1. That is very impressive growth both in relative and absolute terms (1.6 Billion).
Last quarter many pundits thought AMD’s growth will slow down when its Data center growth was lower than Intel’s decline.
There are a couple of reasons why pundits could have thought that:
Intels’ CEO suggested that data center segment was in “digestion” phase and that demand will slow down.
Many cloud providers might start making their own chips (like Amazon’s graviton which saw a huge increase in adoption in AWS)
But this quarter showed that segment is growing and AMD’s share of that growing segment is growing even faster. To me AMD’s biggest competition is cloud providers like Amazon, Google, Microsoft designing their own chips. Apple’s M1 is a great example of what a company with focus and resources can do when it comes to designing their own CPUs
Obviously AMD stock (despite these amazing results) is up by ~1%. I guess the CEO must be a techbro making dick jokes on Twitter for WallStreet “pundits” to take the stock seriously.
Disclaimer: This is not financial advise (obviously). Feel free to subscribe to this blog to get such use(ful|less) advise for free!
AMD reports Enterprise, Embedded and Semi-Custom as one segment. So technically AMD saw a increase of 183% in that segment which includes Data center and gaming consoles.