AMD reports its Q2 2019 Financials – Hits Q2 targets
AMD reports its Q2 2019 Financials – Hits Q2 targets
When compared to Q2 2018, AMD’s financials are down, dropping 13% in year-over-year. AMD’s lowered Q1 revenues are primarily due to their Computing and Graphics segment, as AMD has moved from a time where cryptocurrency miners would purchase every GPU they could manufacture to a time where demand from the crypto market has dried up, and Nvidia has provided stiff competition within the gaming market thanks to their Turing series of graphics hardware.
While AMD now offers Ryzen 3rd Generation and Radeon Navi processors, those product launches occurred in Q3, limiting their impact on the company’s Q2 financials.
In AMD’s Enterprise, Embedded and Semi-Custom segment, revenue is down 12% year-over-year and up 34% sequentially, this change is mostly thanks to lower demand for semi-custom products and increases in higher EPYC sales. This change makes sense as we approach the end of the PS4 and Xbox One’s lifecycle, though these revenues are expected to increase in 2020 thanks to Sony’s AMD-powered next-generation PlayStation console.
In Q3 2019, AMD expects to generate $1.8 billion in revenue +/- $50 million, representing an increase of 18% sequentially and 9% year-over-year. This increase in revenue will be driven by higher Ryzen, EPYC and Radeon sales.
Some analysts were expecting AMD to announce a Q3 revenue target of $1.95 billion, leaving many disappointed in AMD’s quarterly outlook. AMD expects its full-year 2019 revenues to offer a mid-single-digit improvement over 2018. AMD’s non-GAAP gross margins are set to be approximately 42% in 2019.
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