AMD rode strong demand for its Ryzen and EPYC processors to a record third quarter this week, posting revenues of $4.3 billion, up 54% from the prior year.
“We delivered our fifth straight quarter of greater than 50% year-over-year revenue growth,” CEO Lisa Su boasted on Tuesday’s earnings call.
According to Su, AMD benefited from strong demand across the chipmaker's entire product stack, which includes client and data center CPUs, GPUs, and custom designs for customers like Microsoft, Sony, and Valve. This strength not only contributed to record revenues, but also boosted the company’s net income by 137% year over year to $923 million.
Client computing continued to drive the majority of growth in the third quarter, bolstered by strong demand for AMD’s 5000-series CPUs and 6000-series GPUs in the consumer space. The segment grew 44% year over year to $2.4 billion.
Meanwhile, AMD’s enterprise, embedded, and semi-custom revenues grew 69% year over year to $1.9 billion, largely on the strength of the chipmaker’s third-generation EPYC processor family and demand for next-generation consoles, CFO Devinder Kumar said.
AMD also saw strong gains in the data center, where revenues doubled for the second quarter in a row, Su said, adding that this was driven by large shipments of the company’s Instinct CDNA 2 GPUs for the Frontier exascale supercomputer at Oak Ridge National Laboratory, and EPYC processors for the Argonne National Laboratory’s Polaris supercomputer.
AMD Targets Another Record QuarterAMD aims to maintain its momentum going into the fourth quarter.
“Our record third-quarter results and the significant acceleration of our business in 2021 demonstrates we have the right products and strategies to drive best-in-class growth and significant shareholder returns,” Su said.
Looking ahead, the company expects revenues to grow 39% year over year to $4.5 billion, driven by growth across the company’s product stack.
The company also anticipates higher demand across its enterprise, embedded, and semi-custom business unit, driven by continued demand for EPYC processors and custom silicon used in Sony Playstation and Microsoft Xbox products.
Full year, the chipmaker anticipates revenues will grow 65%, up from prior guidance of 60% to about $16 billion.
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