AMD Q3 2021 Earnings: Revenue up 54% YoY, Operating Income by 101%; CPU, GPU Prices Up

AMD posted a stellar third quarter with yearly revenue and gross profit growth of 54% and 70%, respectively. The operating income doubled year on year to $1.055 billion. The net income was up 78% year on year to $893 million, with per-share earnings growing by the same percentage. All the segments reported solid growth and ASP advances through the quarter:

  • Client processor average selling price (ASP) grew year-over-year and quarter-over-quarter driven by a richer mix of Ryzen processor sales.
  • GPU ASP grew year-over-year and quarter-over-quarter driven by high-end Radeon graphics product sales and AMD Instinct data center GPU sales.
  • The year-over-year increase was primarily driven by higher revenue, partially offset by higher operating expenses. The quarter-over-quarter decrease was primarily due to higher operating expenses.

Revenue was $4.3 billion, up 54 percent year-over-year and 12 percent quarter-over-quarter, driven by higher revenue in both the Computing and Graphics segment and Enterprise, Embedded and Semi-Custom segment. Operating income was $542 million compared to $141 million a year ago and $398 million in the prior quarter. The increases were primarily driven by higher revenue and a richer product mix, partially offset by higher operating expenses.

Q3 2021 Q3 2020 Y/Y Q2 2021 Q/Q
Revenue ($M)$4,313$2,801Up 54%$3,850Up 12%
Gross profit ($M)$2,087$1,231Up 70%$1,832Up 14%
Gross margin %48%44%Up 440 bps48%Up 80 bps
Operating expenses ($M)$1,035$706Up 47%$909Up 14%
Operating income ($M)$1,055$525Up 101%$924Up 14%
Operating margin %24%19%Up 5pp24%Flat
Net income ($M)$893$501Up 78%$778Up 15%
Earnings per share$0.73$0.41Up 78%$0.63Up 16%

Computing and Graphics segment revenue was $2.4 billion, up 44 percent year-over-year and 7 percent quarter-over-quarter. The year-over-year and quarter-over-quarter increases were driven by higher Ryzen, Radeon, and AMD Instinct processor sales.

Enterprise, Embedded, and Semi-Custom segment revenue was $1.9 billion, up 69 percent year-over-year and 20 percent quarter-over-quarter. The increases were driven by higher EPYC CPU and semi-custom product sales.

AMD also saw increased adoption of AMD EPYC processors in the third quarter.

  • Argonne National Labs selected AMD EPYC processors to power a new supercomputer, known as Polaris, to allow scientists and developers to test and optimize software codes and applications for AI, engineering, and scientific projects.
  • Google Cloud announced the public preview of N2D Virtual Machines powered by AMD EPYC™ 7003 Series processors.
  • AMD announced that 2nd Gen AMD EPYC CPUs and AMD Radeon Pro V520 GPUs will power new sizes for Amazon EC2 G4ad instances, giving customers the flexibility to provision resources on demand, as needs dictate, rather than being limited to their inventory of physical, on-premise hardware.
  • Cloudflare chose 3rd Gen AMD EPYC processors for its 11th Gen servers, which power the company’s DNS network.

Areej Syed

Processors, PC gaming, and the past. I have written about computer hardware for over seven years with over 5000 published articles. I started during engineering college and haven't stopped since. On the side, I play RPGs like Baldur's Gate, Dragon Age, Mass Effect, Divinity, and Fallout. Contact: areejs12@hardwaretimes.com.
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