AMD reveals impressive Q2 2018 Financial Results

AMD has released their Q2 2018 financials, surpassing their Q1 expectations with $1.76 billion in revenue, an increase of over $110 million over Q1. This increase comes despite recent declines in mining-based Raden graphics sales, showcasing the strength of the company’s Ryzen offerings as well as their growth in the enterprise markets. 

Since Q2 2017, AMD has turned a $42 million loss into a $116 million profit, a boost of $154 million. This growth primarily comes from AMD’s Computing and Graphics Segment, which sees a year-over-year revenue increase of 64%, though the company’s Enterprise, Embedded and Semi-Custom segment revenue has also seen in a revenue boost of 37% year-over-year, highlighting the strength of AMD’s console and server technologies. 

AMD’s Computing and Graphics Segment has seen a revenue decline this quarter, dropping 3% since Q1, though this change is driven primarily by lower graphics card sales and AMD’s decision to lower Ryzen’s pricing in recent quarters. AMD’s Ryzen 7 1800X released with a price tag of $499, whereas its successor, the Ryzen 7 2700X, released for $299. This lower pricing is most offset by increase manufacturing yields and higher sales volume. 

The highlight of AMD’s Q2 revenue is their Enterprise, Embedded and Semi-Custom division, which has seen a quarter-over-quarter revenue increase of 26%. This change is driven by the popularity of AMD’s EPYC server products and the continued popularity of modern AMD-based consoles like the PS4, Xbox One and their high-end variants.  

In Q3 AMD expects their revenue to be around $1.7 billion plus or minus $50 million with an increased gross margin of 38%, which will be driven by strong sales of Ryzen and EPYC products and partially offset by lower graphics card sales.