AMD’s Enterprise, Embedded and Semi-Custom saw a 26 percent quarter-over-quarter increase.
Advanced Micro Devices (AMD) has denied analysts expecting post-result trade volatility the satisfaction of vindication, posting impressive Q2 results.
Market watchers had expected shares to swing as much as 14 percent in August after the company reported its earnings.
Instead, second quarter revenue of $1.76 billion represented a 53 percent rise year-over-year, with gross margin improving more than three percentage points, resulting in AMD’s highest quarterly net income in seven years.
CEO Lisa Su said in an earnings call: “Turning to large enterprise customers, we added dozens of new end customers in the quarter. Our value proposition continues to be strong in segments like HPC, data analytics and in general-purpose virtualized enterprise environments. We are extremely focused on accelerating EPYC processor adoption in these targeted segments in the second half of the year.”
The enterprise, embedded and semi-custom business segment within the American multinational semiconductor company saw revenue soar from previous quarter, rising from $532 million to $670 million.
This was one of the segments alongside computing and graphics that had shot AMD’s year-over-year revenue up from the previous year.
AMD’s overall revenue from Q2 was $1.76 billion, up by seven percent from their Q1 results of $1.15 billion.
Computing and Graphics Revenue Slightly Down
The Computing and Graphics segment recorded a three percent quarter-over-quarter decrease for AMD, posting overall revenue of $1.09 billion, slightly down on the Q1 figure of $1.115 billion.
Within the computing and graphics business segment’s slight decline was down to the company’s GPU products in the blockchain market posting lower-than-expected revenue.
Alongside this, the client processor average selling price took a dive too both quarter-over-quarter and year-over-year due to a lower desktop processor ASP.
It was not all negative within Computing and Graphics as Radeon’s data centre and channel products played a part in increasing the company’s GPU ASP.
Enterprise, Embedded and Semi-Custom Deliver for AMD
With Computing and Graphics being the only disappointment for AMD’s Q2 results, the Enterprise, Embedded and Semi-Custom business segment fared much better.
That business segment recorded both 37 percent year-over-year and a 26 percent quarter-over-quarter increase.
AMD highlight that those results in Computing and Graphics were down to semi-custom and server posting higher revenue figures.
Lisa Su commented: “We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years,”
She added: “Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth.”