AMD beats expectations as revenues surge in Q4
Server processor sales surged more than 50% during the three-month period as the firm continues to close in on Intel
AMD's server and chip business recorded a 176% annual revenue increase for the final quarter of 2020.
The $3.2 billion brought in during the final three months of the year was also an 11% increase from the previous quarter, as strong demand for gaming consoles and laptops helped the firm end the year on a high.
AMD also its server processor sales surged more than 50% during the three-month period, with the firm's latest Epyc CPUs continuing to erode Intel's lead in the market.
These gains are likely to continue for the chipmaker with strong forecasts for the current quarter. The firm said it expects revenues to top $3.3 billion for the first quarter of 2021, which would be an impressive 37% year-on-year increase.
The results highlight the rapid progress made by AMD over the last few years with its 7nm processor business. The company has made serious gains in the chip market and its overall revenue for 2020 was up 45%.
"We significantly accelerated our business in 2020, delivering record annual revenue while expanding gross margin and more than doubling net income from 2019," said Dr Lisa Su, AMD CEO.
"Our 2021 financial outlook highlights the strength of our product portfolio and robust demand for high-performance computing across the PC, gaming and data centre markets. We are excited about the opportunities ahead and very confident in our long-term strategy as we continue executing our leadership product roadmaps."
AMD's full-year revenues came in at $9.76 billion and although that is significantly lower than Intel, the smaller firm is increasingly capitalising on the larger companies turf. Intel reported $20 billion in revenues for the final quarter of 2020, which was a 1% increase from the previous three months.
The widely reported delays with its 7nm chip manufacturing have not only affected its profits, but it has also allowed AMD to claim market share. The recent changes at the top, with Bob Swan stepping down and Pat Gelsinger taking over, could well lead to stronger financial performance.
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