AMD posts record $5.9 billion revenue in Q1, despite poor sales in PC market

In the first quarter of 2022, the hardware giant generated a record $5.9 billion in revenue, beating analyst expectations and marking an increase of 71.2% compared to the same period of the previous year. In terms of net income, they were 786 million dollars, which represents a growth of 42%.

AMD’s Enterprise, Embedded and Semi-Custom segment was the top revenue earner in the quarter, contributing $2.5 billion for an annual growth rate of 88%. Its operating income was even more impressive, growing 218% compared to the previous year.

AMD’s semi-custom sales, which are of the PlayStation 5, Xbox Series X and Steam Deck, grew by a double-digit percentage year-over-year. “Sales of this generation of game consoles continue to outpace all previous generations, and we expect 2022 to be a record year for our semi-custom business,” said CEO Dr Lisa Su.

What generated the most for AMD are the semi-custom ones for the PlayStation 5, Xbox Series X and Steam Deck consoles

It was another record quarter for AMD’s computing and graphics business. This brought in $2.8 billion in revenue, up 33% from a year ago and up 8% from the previous quarter, a jump that has narrowed its Ryzen CPU and Radeon GPU sales.

News of the success of this segment is especially welcome, coming at a time when PC sales are slowing following the pandemic-induced boom that has seen much of the world work from home.

“Although the PC market is experiencing some downturn due to several quarters of near-record unit shipments, our focus remains on the top, gaming and commercial side of the market where we see strong growth opportunities and expect to continue to gain share of overall revenue. of customers, I add Su.

The outlook is equally positive for the second quarter of the year. AMD predicts second quarter 2022 revenue to reach $6.5 billion (+/- $200 million), up 69% from the prior year and 10% higher than the prior quarter.

AMD’s stock price has risen about 6% since the first quarter financial results were announced.