AMD Shipment And ASP Growth

AMD (AMD) shipment and ASP growth rates surged with the launch of its Zen architecture in 2017. AMD Shipment and ASP growth momentum faded in early 2019 as the industry underwent a phase of stagnation due to heightened trade tensions between US and China, while AMD’s Ryzen 2000-series did not have a large enough performance advantage to command top dollar.

Metric Q4 2018 Q1 2019 Q2 2019 Q3 2019
ASP Growth (YoY) 15% 4% 5% 40%
Unit Growth (YoY) 17% -8% 0% 10%

As we head into 2020, it is forecasted that AMD’s growth momentum will pick again. Its new line of Ryzen 3000-series Threadripper, desktop CPUs and APUs are based on the new and improved Zen 2 architecture, and fabricated on the 7nm node, so that should ideally bolster AMD’s shipment and ASP growth over the coming quarters. These ASP and shipment gains have driven AMD’s financials higher (Read: AMD’s Revenue by Segment). 

Another dynamic that’s boosting AMD Shipment and ASP growth is that Intel is facing a supply crunch. Intel hasn’t been able to migrate to the 10nm node and it has had to roll back to its 14nm production lines in an attempt to smoothen its yield issues. Intel’s supply issues have encouraged OEMs and DIY PC builders to look for AMD’s competitive processors as an alternative. It is believed that Intel won’t transition to the 10nm node, which is comparable to the 7nm that AMD is already using, until 2020 at least. This industry dynamic could continue to favor AMD and bolster its growth momentum.

It’s worth noting AMD Shipment and ASP growth rates are based only on its Computer and Graphics segment and don’t include any contribution from its Enterprise, Embedded and Semi-Custom segment. You can also read more about AMD’s Operating Margins by Segment to get a better idea of its business diversity.

Disclaimer: Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should ...

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