AMD's Q2 2021 Results Equals Growth Ahead

Some companies beat expectations. AMD crushes them. On quarterly revenue of $3.85 billion, AMD has now delivered its fourth consecutive quarter of record revenue, a trend we anticipate will continue based on the companies improved market position and its strong Q3 revenue guidance of $4.1 billion.

AMD Q2 2021 Earnings. The 99% Solution

The company finished the quarter with a strong cash position and consistent improvements across all key metrics. Key data points from the earnings release include:

  • Revenue was $3.85 billion versus $3.62 billion expected, up 99 percent year-over-year and up 12 percent sequentially from Q1.
  • EPS improved to $0.63 per share (non-GAAP), up 250 percent Y/Y and 21 percent over the prior quarter.
  • Gross margin improved 4 percentage points Y/Y to 48 percent, up 2 percentage points over the prior quarter.
  • Operating margin doubled from the prior year, up 12 percentage points to 24 percent and up from 22 percent Q/Q.
  • Cash, cash equivalents, and short-term investments were $3.79 billion at the end of the quarter.
  • Cash from operations increased to $952 million, up from $898 million Q/Q and $243 million Y/Y.

AMD also announced it had repurchased 3.2 million shares of common stock (valued at $265 million) as part of a $4 billion share repurchase program announced earlier in the quarter.

Balanced Revenue = Lower Risk

Given the current instability in the semiconductor supply chain, ongoing chip shortages, and shifting customer demand, we’re impressed by the growth across AMD’s major segments, CG (Computing and Graphics) and EESC (Enterprise, Embedded, and Semi-Custom). Both segments showed impressive growth.

CG Segment:

  • CG revenue was up 65 percent Y/Y to $2.25 billion, an increase of 7 percent from the prior quarter.
  • ASP (average selling price) were up Y/Y and Q/Q, in part driven by increased data center GPU sales.
  • CG operating income was up 163 percent Y/Y to $526 million, an increase of 8 percent over the prior quarter.
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I wrote this article myself and it expresses my own opinions. I am not receiving compensation for it. I have no personal business relationship with any company whose stock is mentioned in this ...

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Susan Miller 1 month ago Member's comment

Nice to see you back.

Fred McClimans 1 month ago Author's comment

Hi Susan! Thank you :)