AMD charts stronger 2022 as data-center revenue booms

Advanced Micro Devices (AMD) reported revenue of $4.8 billion (+49 percent), operating income of $1.2 billion and net income of $974 million for the fourth quarter of 2021.
AMD CEOSegment Summary

AMD said Computing and Graphics segment revenue rose 32 percent to $2.6 billion — driven by Ryzen and Radeon processor sales.

Client processor average selling price (ASP) increased due to a richer mix of Ryzen processor sales, AMD said.

GPU ASP increased year-over-year primarily driven by Radeon product sales and decreased quarter-over-quarter due to product mix.

Operating income was $566 million compared to $420 million a year ago and $513 million in the prior quarter. Operating income improvements were primarily driven by higher revenue, partially offset by higher operating expenses.

AMD said Enterprise, Embedded and Semi-Custom segment revenue increased 75 percent to $2.2 billion — driven by higher EPYC and semi-custom processor sales.

AMD reported revenue of $16.4 billion, operating income of $3.6 billion and net income of $3.2 billion for full year 2021.

The California-based company said net income fell to $974 million from $1.78 billion last year. Excluding items, AMD earned 92 cents per share, surpassing estimates of 76 cents.

AMD forecast revenue of about $21.5 billion in 2022, as stellar demand for its chips used in data center servers is expected to continue to drive growth.

“Relative to the growth from the different businesses, the growth will be led by server,” Chief Executive Officer Lisa Su told analysts on a conference call, adding that the server business would be very strong this year.

AMD has dived deeper into the data center market to capitalize on booming cloud adoption, while its agile model of outsourced manufacturing has helped the company pry away market share from rival Intel, Reuters news report said.

AMD is clearly gaining market share in both the PC client and the server/datacenter end-markets against Intel, said Kinngai Chan, managing director and senior research analyst for semiconductors at Summit Insights Group. AMD’s market share in both those markets is still relatively low.

AMD has made a number of new launches with significant performance gains, including updates to its graphics processor lineup used for cloud and high-quality gaming, creating a challenge for Intel.

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