AMD Gears Up for Q1 Earnings: Semi-Customized & EPYC in Focus

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AMD Gears Up for Q1 Earnings: Semi-Customized & EPYC in Focus


Superior Micro Gadgets AMD is slated to report first-quarter 2021 outcomes on Apr 27.

The continuing momentum in EPYC processors and semi-custom merchandise’ gross sales is more likely to have contributed to AMD’s revenues within the to-be-reported quarter.

Nonetheless, increased investments on product growth and platform to retain its aggressive stance in opposition to the likes of Intel INTC and NVIDIA is more likely to have affected profitability within the to-be-reported quarter.

Superior Micro Gadgets, Inc. Income (Quarterly)

 

Advanced Micro Devices, Inc. Revenue (Quarterly)

Superior Micro Gadgets, Inc. revenue-quarterly | Superior Micro Gadgets, Inc. Quote

 

Click on right here to understand how the corporate’s total Q1 efficiency is predicted to be.

Continued Momentum Seen For EPYC Processors

Ongoing traction witnessed in uptake of EPYC processors is anticipated to have boosted AMD’s server revenues within the to-be-reported quarter.

The corporate is clinching new deal wins for its EPYC processors from knowledge facilities in addition to amongst main enterprise, cloud and high-performance computing (HPC) firms. These processors have been witnessing adoption by main cloud gamers together with Amazon Net Companies (“AWS”), Alphabet GOOGL Google Cloud and Microsoft’s MSFT Azure.

Additional, Google additionally prolonged availability of its confidential computing Digital Machines (VMs) powered by EPYC processors to 9 areas.

In March 2021, AMD unveiled the third-generation AMD EPYC processors (codenamed Milan) to additional its prospects within the server processor market.

Semi-custom revenues within the first quarter are anticipated to profit from robust demand for Xbox Collection X, Xbox Collection S and PlayStation 5 gaming consoles.The newest era {hardware} consoles had been launched in November 2020.

Greater EPYC server processor along with stable traction in semi-custom product gross sales together with momentum in offers wins are anticipated to have contributed to Enterprise, Embedded and Semi-Customized revenues within the first quarter.

The Zacks Consensus Estimate for Enterprise, Embedded and Semi-Customized section for the primary quarter is pegged at $1.326 billion.  The projection suggests a rise of 281% from the prior-year quarter’s determine.

A Take a look at Computing and Graphics Phase Development Drivers

The consensus mark for revenues within the Computing and Graphics section for the primary quarter is pegged at $1.885 billion, which signifies a rise of 31.1% on a year-over-year foundation. Greater PC shipments within the first quarter, pushed by elevated demand is anticipated to have favored the section’s efficiency.

Per Gartner report, PC gross sales had been up 32% 12 months over 12 months to 69.9 million items throughout the December-end quarter.

Furthermore, AMD is predicted to have witnessed regular demand for Ryzen PRO processors within the first quarter as a result of extension of the work at home arrange amid spike in infections and re-imposition of lockdowns throughout a number of elements of the world. These processors improve distant work capabilities of the business notebooks and facilitate superior computing efficiency to spice up enterprise productiveness.

Ryzen PRO processors are additionally anticipated to have witnessed incremental adoption throughout main OEMs within the first quarter. In January 2021, AMD unveiled a brand new class of cellular processors — AMD Ryzen 5000 Collection — based mostly on Zen three core structure.

Additional, in March 2021, AMD launched AMD Radeon RX 6700 XT graphics card, which is constructed on the corporate’s RDNA 2 gaming structure. The graphics card is predicated on the 7 nanometer (nm) course of know-how and is aimed towards augmenting PC video gaming experiences.

AMD’s Knowledge Heart GPU gross sales are more likely to have benefited from wholesome demand for AMD Intuition MI100 accelerator.

Incremental adoption of latest processors is more likely to have pushed Computing and Graphics revenues within the first quarter.

Shares of AMD, which carries a Zacks Rank #2 (Purchase), have returned 46% previously 12 months in contrast with the trade’s surge of 75.7%.

You may see the entire checklist of at the moment’s Zacks #1 Rank (Robust Purchase) shares right here.

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