We closed the day with AMD’s financial results, where the company closed the second quarter of the year with revenues of $ 1.93 billion, above the forecast of $ 1.86 billion by Wall Street analysts, and another great leap regarding the 1,790M $ entered in Q1 2020.
This quarter was essential for the company, where although the Coronavirus has seriously affected the numbers, AMD has fared very well despite the global situation, and if you add to that the reduction in sales of AMD Ryzen CPUs, to the awaiting the new generation that will arrive during this quarter, it will also be in this quarter when we come across at least more than 50 portable computers equipped with their AMD Ryzen 4000 processors, so the Q3 2020 should experience notable growth in revenue.
Chewing the information, the results show that during Q2 2020, AMD’s revenues grew by 26% compared to the same period in 2019 and 8% sequentially. During the second quarter of the fiscal year 2020, AMD reports that the gross margin of the product was 44%, helped by sales by Ryzen and EPYC. The company’s total gross margin fell sequentially due to rising costs for semi-custom / semi-customs products.
AMD’s most profitable segment was Computers and Graphics with revenue of $ 1.37 billion, and this implies a sequential decline due to declining sales of graphics cards, which continue to weigh on the company’s numbers. This would not have a solution until September, which is when the announcement of the Radeon 6000 is expected. As a positive point, Computing and Graphics revenues grew 37% year-on-year.
Now, the AMD Q3 2020 can suffer brutal growth in revenue, not only for its AMD Ryzen 4000 CPUs, AMD Radeon 6000 GPUs or server products after Intel has announced new delays, and that is that the mass production of Custom silicon to bring the PlayStation 5 and Xbox Series X consoles to life will dramatically inflate revenue.
Analysts estimate that all of this combined will lead AMD to enter $ 2.55 billion during Q3 2020 with a margin of error of $ 100 million. If met, it would imply a record in the history of the company.