AMD sales up 70 percent, but profits fall

AMD achieved more than 70 percent more turnover in the past quarter than in the same quarter last year. AMD achieved significantly higher sales across all major product categories. Despite the record quarter, net profit fell by about 37 percent.

Earned in total AMD in the past quarter about $6.55 billion, a record for the American tech manufacturer. Net profit, on the other hand, declined to $447 million from $710 million in the same quarter last year. This is partly due to a significant increase in operating expenses of more than 150 percent and the ‘depreciation of intangible assets’ for the Xilinx and Pensando acquisitions.

Products within the Client and Gaming categories accounted for revenue increases of 25 and 32 percent, respectively. The two divisions, responsible for CPUs and GPUs for consumers, account for the bulk of AMD’s annual revenue. The company cites recent high prices as a driver for the increases within these categories.

In contrast, the largest increases occurred in the Data Center and Embedded divisions. There were sales increases of 83 and 2228 percent respectively. In the case of data centers, a very successful quarter was reported due to the popularity of EPYC products. The enormous increase of the Embedded branch was caused by the addition of the figures of the already acquired Xilinx, figures that were mentioned separately until last quarter. Previously, AMD only generated a few tens of millions of dollars in sales in this category; that’s now nearly $1.3 billion.