Advanced Micro Devices is making a comeback and is stealing its share of the arctic rival Intel based on today's winning numbers. Sunnyvale, California-based PC processors and graphics chips, reported revenue of $ 1.65 billion for the quarter, an increase of 40 percent over the previous year. Since the PC market is not growing by 40 percent and the competitor Intel is not growing so fast, it is logical that AMD's latest processors gain market share.
The trend was evident in the previous quarter. With the launch of its Zen-based processors in 2017, Advanced Micro Devices has seen a rare increase in market share – from 8 percent in the fourth quarter of 2016 to 12 percent in the fourth quarter of 201
It's not always easy to say how much share AMD is gaining as it mixes processor and graphics sales in the same computer and graphics department. This quarter, sales increased to $ 1.12 billion, up 95 percent from the prior year, driven by sales of Ryzen processors and Radeon graphics.
AMD should achieve an adjusted 9 cent share in the first quarter of March 31, compared with a loss of 4 cents per share a year earlier. Sales were estimated at $ 1.57 billion, compared to $ 984 million a year ago. Actual results amounted to 11 cents per share in net income of $ 1.65 billion.
Last week, AMD launched its second generation Ryzen desktop chips. The Zen-based architecture can handle 52 percent more commands per clock than the previous generation. AMD released its faster Zen-based Ryzen chips a year ago, and now Zen technology is pervading the entire product line. The first Ryzen chips debuted in March 2017, and by October 2017 AMD announced a return to profitability. AMD also launched its Epyc Zen-based server chips last summer. In February, Ryzen Mobile launched Accelerated Processing Units, which combine processor and graphics on a single chip. AMD also unveiled its high-end 16-core thread ripper processor this past August, a contender for the fastest desktop processor.
The latest Ryzen chips are aimed at PC gamers and content developers or the high-end PC business. Anderson said AMD and its partners will launch 60 new Ryzen systems this year. Two-thirds of these are mobile customers.
Of course, the share price of AMD and the rival graphics chip maker Nvidia often runs in the crypto currencies, as graphics chips are used for the blockchain-based currencies. Cryptocurrency is a small part of the overall demand for graphics chips, but traders are in love with the rising price of graphics chips that comes with the new popularity of Bitcoin and other cryptocurrencies. AMD has not mentioned sales of cryptocurrencies in its press release.
AMD said corporate, embedded and semi-custom sales (including game console chips) fell 12 percent to $ 532 million. This decline was partially offset by growth in Epic Server processor sales. Intel reports its results on Thursday.
"The first quarter was a stellar start to 2018 with 40 percent year over year sales growth," said Lisa Su, CEO of AMD, in a statement. "The adoption of new, high-performance products through PC, gaming and data centers continues to accelerate, we look forward to our long-term roadmaps and focus on sustained revenue growth and profitability."