AMD increased its sales in the second quarter of 2020 by 26 percent compared to the same period in the previous year. Revenue rose $ 400 million to $ 1.93 billion. The increase in sales combined with a higher gross margin also gave AMD a profit of $ 157 million, an increase of 348 percent.
Thus, both categories surpass This gave the stock price an increase of $ 6.99 or 10.34 percent in after-hours trading. At $ 74.60, the closing price was nearly $ 3 above the current 52-week high of $ 71.63.
“We delivered strong second quarter results, led by record notebook and server processor sales, as Ryzen and Epyc sales more than doubled compared to last year,” said AMD CEO Lisa Su. “Despite a degree of macroeconomic uncertainty, we are raising our full-year sales forecast as we enter our next growth phase, which will be driven by the acceleration of our business in several markets.”
The Computing and Graphics Group increased its revenue by 45 percent to $ 1.37 billion. In addition, the average price for Ryzen processors increased – the average prices for GPUs declined.
Enterprise, embedded, and semi-custom, including the Epyc server processors and chips AMD manufactures for game consoles, contributed $ 565 million to the total, 4 percent less than a year ago. As Epyc sales grew, demand for semi-custom chips plummeted.
AMD is now targeting $ 2.55 billion in revenue in the third quarter, an increase of 42 percent. High demand for Ryzen and Epyc processors is expected to contribute to this. The gross margin is also expected to improve again.
AMD predicts an increase in sales of 32 percent in 2020. The gross margin according to Non-GAAP should be 45 percent. AMD ended 2019 with $ 6.73 billion in revenue and a 43 percent non-GAAP margin.
AMD apparently also benefits from Intel’s problems when switching to new manufacturing processes. While AMD already produces CPUs using a 7-nanometer processthe introduction of 10-nanometer processors has not yet been completed. In addition, the start of the first 7-nanometer chips should be delayed by at least six months.
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