AMD nearly doubles its revenue versus Q2 2020

AMD's second-quarter financial results are in. The company's revenue rose 99 percent year-over-year to $3.85 billion, and is up 12 percent versus the previous quarter. On a non-GAAP basis, AMD's net income came in at $778 million, 21 percent more than the previous quarter, and 3.6x higher than last year's $216 million. Non-GAAP earnings per share were 58 cents, 12 cents better than Wall Street consensus.

For the current quarter, AMD expects revenue of $4.1 billion, plus or minus $100 million. That's quite a bit higher than analyst estimates of $3.8 billion. Furthermore, AMD is more optimistic about its full-year growth. The chip designer anticipates sales will rise 60 percent in 2021, up from prior guidance of 50 percent.

Computing and Graphics revenue was up 65 percent year-over-year and 7 percent quarter-over-quarter. Enterprise, Embedded and Semi-Custom skyrocketed 183 percent year-over-year and rose 19 percent versus the previous quarter. Sadly, AMD is still not providing a lot of granularity here. It would be interesting to see a breakdown of the GPU, client CPU, datacenter CPU, embedded, and semi-custom revenue.

AMD's shares are up 1.78 percent to $92.65 in pre-market trading.

AMD (NASDAQ:AMD) today announced revenue for the second quarter of 2021 of $3.85 billion, operating income of $831 million, net income of $710 million and diluted earnings per share of $0.58. On a non-GAAP* basis, operating income was $924 million, net income was $778 million and diluted earnings per share was $0.63.

“Our business performed exceptionally well in the second quarter as revenue and operating margin doubled and profitability more than tripled year-over-year,” said AMD president and CEO Lisa Su. “We are growing significantly faster than the market with strong demand across all of our businesses. We now expect our 2021 annual revenue to grow by approximately 60 percent year-over-year driven by strong execution and increased customer preference for our leadership products.”

Q2 2021 Results
Revenue was $3.85 billion, up 99 percent year-over-year and 12 percent quarter-over-quarter driven by higher revenue in both the Computing and Graphics segment and Enterprise and Embedded and Semi-custom segment.

Gross margin was 48 percent, up 4 percentage points year-over-year and 2 percentage points quarter-over-quarter. The increases were driven by a richer mix of sales, including high-end Ryzen™, Radeon™ and EPYC™ processor sales.

Operating income was $831 million compared to operating income of $173 million a year ago and $662 million in the prior quarter. Non-GAAP operating income was $924 million compared to $233 million a year ago and $762 million in the prior quarter. Operating income improvements were primarily driven by higher revenue.

Net income was $710 million compared to $157 million a year ago and $555 million in the prior quarter. Non-GAAP net income was $778 million compared to $216 million a year ago and $642 million in the prior quarter.

Diluted earnings per share was $0.58 compared to $0.13 a year ago and $0.45 in the prior quarter. Non-GAAP diluted earnings per share was $0.63 compared to $0.18 a year ago and $0.52 in the prior quarter.

Cash, cash equivalents and short-term investments were $3.79 billion at the end of the quarter. Cash from operations was $952 million compared to $243 million a year ago and $898 million in the prior quarter. Free cash flow was a record $888 million compared to free cash flow of $152 million a year ago and $832 million in the prior quarter.

In May 2021, the Company announced a $4 billion share repurchase program. In the second quarter, the Company repurchased 3.2 million shares of common stock for $256 million.

Quarterly Financial Segment Summary
Computing and Graphics segment revenue was $2.25 billion, up 65 percent year-over-year and 7 percent quarter-over-quarter driven by higher client and graphics processor sales.

Client processor average selling price (ASP) grew year-over-year and quarter-over-quarter driven by a richer mix of Ryzen desktop and notebook processor sales.

GPU ASP grew year-over-year and quarter-over-quarter driven by high-end graphics product sales, including data center GPU sales.

Operating income was $526 million compared to $200 million a year ago and $485 million in the prior quarter. The increases were primarily driven by higher revenue.

Enterprise, Embedded and Semi-Custom segment revenue was $1.60 billion, up 183 percent year-over-year and 19 percent quarter-over-quarter. The increases were driven by higher EPYC processor revenue and semi-custom product sales.

Operating income was $398 million compared to $33 million a year ago and $277 million in the prior quarter. The increases were primarily driven by higher revenue.

All Other operating loss was $93 million compared to $60 million a year ago and $100 million in the prior quarter.