AMD’s R&D Budget increased by 15% in 2017

AMD's R&D Budget increased by 15% in 2017

AMD’s R&D Budget increased by 15% in 2017

2017 has seen some huge changes at AMD, with the company moving back into profitability thanks to the recent successes of Ryzen, Radeon and EPYC. AMD is now a viable competitor to Intel, allowing them to make headway in both the consumer and server markets, revolutionising both market segments in the process. 

Given AMD’s financial situation, Ryzen is nothing short of a miracle, a compelling architecture that was developed on a shoestring budget, especially when considering the R&D spending of both Intel and Nvidia. 

AMD’s plans are not for Ryzen to become a one-hit wonder and for Radeon to remain in the same market position, which means that a lot of AMD’s recent earnings are getting pumped into research and developments, with 2017 seeing a huge increase in spending when compared to 2016. Over the year, AMD’s R&D spending has increased by around 15%, an increase of $152 million. This isn’t a small chunk of change and should help the company develop more exciting products moving forward.  

While AMD’s R&D spending has decreased moving into Q4, this change is likely due to the general market slowness of this quarter when compared to Q3, as can be seen by AMD’s decreased profits this quarter. 



R&D Budget (Million) 2016 2017 Increase (YoY)
Q1 $242 $266 9.9%
Q2 $243 $279 14.8%
Q3 $259 $315 21.6%
Q4 $264 $300 13.6%
Full Year $1,008 $1,160 15.0%

  
Moving into Q1 2018, AMD plans to deliver more revenue growth, with a broader release of Raven Ridge (Ryzen CPU Vega Graphics) on both the desktop and mobile markets as well as the release of Intel’s Kaby Lake-G (where AMD supplies the graphics component).

Interest in AMD’s EPYC processors is also expected to swell after the reveal of Spectre and Meltdown, especially after Intel’s launch of buggy firmware mitigations and the fact that they are worse affected than equivalent AMD processors. 
 

AMD's R&D Budget increased by 15% in 2017  

2018 should be the first full year where AMD is profitable, which means that the company is likely to continue growing and increasing their R&D spending as time moves on. 

You can join the discussion on AMD’s R&D spending on the OC3D Forums.