Earnings: AMD Doubles Revenue, Triples Profit
In this earnings season, companies all over are dropping their latest quarterly results and we’re here equally reporting on them. We’ve touched on social media companies Snap Inc and Twitter, electric carmaker Tesla, and iPhone maker Apple. Now, the next is chipmaker AMD Inc.
AMD has dropped its earnings for the second quarter of 2021, showing strong prospects as revenue doubled year-over-year and net income more than tripled.
- AMD posted $3.9bn in revenue in Q2, up 99% year-over-year and 12% from the preceding quarter. For the same period, the company’s net income was $710mn, up 352% year-over-year and 28% from the preceding quarter.
- Doubling its revenue and nearly quadrupling net income indicates AMD has a strong yet fast-growing business. It’s bound to grow even more as the company is set to complete its acquisition of rival chipmaker Xilinx.
- AMD makes money selling high-performance chipsets used in computers, consoles, data centers, and the likes. It’s the main rival to Nvidia Inc, the foremost maker of high-end chipsets globally.
- For the current quarter which is Q3 2021, AMD is expecting to bring in $4.1bn in sales, up 46% year over year. For the full year 2021, the company now expects to boost its revenue by 60% from 2020.
- AMD is in the process of completing the biggest acquisition in its history; buying rival chipmaker Xilinx for $35bn all with stock. The deal is edging closer to completion as the company has overwhelming approval from shareholders and is clearing regulatory hurdles globally.
- This May, AMD announced a $4bn share buyback program that’ll be funded with its cash flow. Such stuff usually pleases investors who are ever hungry for either short-term and long-term returns.
- AMD’s current market cap stands at $111bn.