AMD reports best quarterly profit in 7 years thanks to new products

[ItsMitch]

S:  AMD Press Release | AMD Financials for Q2

Under CEO Lisa Su, AMD has clawed itself back from the brink of bankruptcy and has hit the best quarterly profits it had in 7 long painful years, which are in part to the new products they've launched, TR, EPYC, Zen & many more. Their stocks was up about 7 percent in after hours trading, Intel is set to set to report it's financials on Thursday. 

Quote

SANTA CLARA, Calif. — July 25, 2018 — AMD (NASDAQ:AMD) today announced revenue for the second quarter of 2018 of $1.76 billion, operating income of $153 million, net income of $116 million and diluted earnings per share of $0.11.

AMD Lisa Su said in the news release

Quote

“We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years,” said Dr. Lisa Su, AMD president and CEO. “Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth.”

Looks like AMD really want this to become a long term thing and not a short term to appease it's loyal investors. 

 

E: Still working on the thread, will post more in a min 

[DrMacintosh]

Not much profit, but it is profit meaning everyone got their paychecks and everything they needed to pay for got paid for. That is the important part. 

[ItsMitch]

1 minute ago, DrMacintosh said:

Not much profit, but it is profit meaning everyone got their paychecks and everything they needed to pay for got paid for. That is the important part. 

Profit is profit at the end of the day, AMD will be relatively happy they didn't lose money this quarter, investors /should/ be happy. 

[DrMacintosh]

Just now, SC2Mitch said:

Profit is profit at the end of the day, AMD will be relatively happy they didn't lose money this quarter, investors /should/ be happy. 

They clearly are if the stock is up.

[AnonymousGuy]

Before anyone gets too excited: Intel makes > $4 billion in net income per quarter.  More than 3x what AMD makes as revenue.

 

AMD is going under / going to be acquired,  it's just a matter of when.

[jeffmeyer5295]

3 minutes ago, AnonymousGuy said:

Before anyone gets too excited: Intel makes > $4 billion in net income per quarter.  More than 3x what AMD makes as revenue.

For those that are curious, copied from intels website;

 

INTEL CORPORATION
CONSOLIDATED SUMMARY STATEMENT OF INCOME DATA

		Three Months Ended								Twelve Months Ended
(In Millions, Except Per Share Amounts)		Dec 30, 2017				Dec 31, 2016				Dec 30, 2017				Dec 31, 2016
NET REVENUE		$	17,053			$	16,374			$	62,761			$	59,387

[Guest]

Can't wait until they release a decent video card then if the new processors shakes things up. 

[Poofu]

12 minutes ago, AnonymousGuy said:

AMD is going under / going to be acquired,  it's just a matter of when.

What are you talking about? They've expanded into the Chinese market by licensing their IP and their CPU division is doing great taking market share away from Intel. GPUs on the other hand that's a different story.

Just because they're smaller doesn't mean that they're going to be acquired. What this means is that Intel should legitimately be worried that AMD could cause their quarterly earnings to become negative.

[AnonymousGuy]

4 minutes ago, Poofu said:

What are you talking about? They've expanded into the Chinese market by licensing their IP and their CPU division is doing great taking market share away from Intel. GPUs on the other hand that's a different story.

Just because they're smaller doesn't mean that they're going to be acquired. What this means is that Intel should legitimately be worried that AMD could cause their quarterly earnings to become negative.

Just like AMD's semi-custom chip development for consoles would save them 6 years ago.  Oh wait, it didn't.  Licensing your IP to China means you'll probably make very little money for 18 months while they clone it and then release their own version that is probably better and certainly cheaper.

 

On your second point, there doesn't exist a scenario where AMD significantly impacts Intel.  Put it to you this way: Intel could stop making x86 CPUs completely right now and STILL make more money than AMD does.  Intel is very well diversified.  AMD isn't and has 2 larger and drastically better funded competitors.  That's a recipe for death of your business.

[PlayStation 2]

I smell a flame war a-brewin'.

[C2HWarrior]

3 minutes ago, Dan Castellaneta said:

I smell a flame war a-brewin'.

Ikr can't we all just be happy for amd and the market instead of turning this into some fanboy showdown

[PlayStation 2]

Just now, C2HWarrior said:

Ikr can't we all just be happy for amd and the market instead of turning this into some fanboy showdown

It's usually ardent fanboyism vs. ardent hatred in these parts.

It's incredibly annoying and frankly immature.

[Gullerback]

as long as they keep making gains in ryzen/+  it will just keep upticking. Good for them

[Brooksie359]

16 minutes ago, AnonymousGuy said:

Just like AMD's semi-custom chip development for consoles would save them 6 years ago.  Oh wait, it didn't.  Licensing your IP to China means you'll probably make very little money for 18 months while they clone it and then release their own version that is probably better and certainly cheaper.

 

On your second point, there doesn't exist a scenario where AMD significantly impacts Intel.  Put it to you this way: Intel could stop making x86 CPUs completely right now and STILL make more money than AMD does.  Intel is very well diversified.  AMD isn't and has 2 larger and drastically better funded competitors.  That's a recipe for death of your business.

The former CEO to Intel said they would lose market share to AMD in the server market. I would say if it's significant enough for the CEO of Intel to disclose that to shareholders then it is significant. 

[ItsMitch]

11 minutes ago, Dan Castellaneta said:

I smell a flame war a-brewin'.

they can fucking try it 

[PlayStation 2]

1 minute ago, SC2Mitch said:

they can fucking try it 

electrical fire

[GoldenLag]

13 minutes ago, AnonymousGuy said:

Just like AMD's semi-custom chip development for consoles would save them 6 years ago.  Oh wait, it didn't.  Licensing your IP to China means you'll probably make very little money for 18 months while they clone it and then release their own version that is probably better and certainly cheaper.

 

On your second point, there doesn't exist a scenario where AMD significantly impacts Intel.  Put it to you this way: Intel could stop making x86 CPUs completely right now and STILL make more money than AMD does.  Intel is very well diversified.  AMD isn't and has 2 larger and drastically better funded competitors.  That's a recipe for death of your business.

Yet AMD still excist 6 years later with a recipee for success. A succesfully implemented Chiplet design in x86 processors.

 

AMD doesnt care as long as they have revenue. Their partnership/colaberation with china has left them with a virtual monopoly im the server space in China as Intel arent allowed to sell Xeons. There is money to be made, and they have capitalized on that. Copying of the chip is unlikely to happen.

 

AMD is in a terrible spot, and have been for several years. Lets celebrate them actually earning money for once. Intel isnt killing x86 anytime soon and there is no surprise im Intel being bigger, after all AMD was an liscence manufactorer for intel back in the day

[sazrocks]

41 minutes ago, AnonymousGuy said:

AMD is going under / going to be acquired,  it's just a matter of when.

? AMD’s license for the x86 architechture would be invalidated if they were to be aquired; who would aquire them? RTG maybe, no way AMD as a whole.

[GoldenLag]

2 minutes ago, Dan Castellaneta said:

electrical fire

Nah, drop a Bulldozer in there and Fusion will occur

[GoldenLag]

1 minute ago, sazrocks said:

? AMD’s license for the x86 architechture would be invalidated if they were to be aquired; who would aquire them? RTG maybe, no way AMD as a whole.

The only ones that can aquire AMD without to much trouble is Intel and VIA. But if intel aquired AMD then they would be charged with monopoly charges. Dont believe VIA has the funds to buy AMD and any other would invalidate the X86-64 cross liscencing making a patent mess of current desktop processors.

 

I dont have the details, but aquiring someone who is liscensing X86 is very difficult

[Phentos]

1 minute ago, GoldenLag said:

The only ones that can aquire AMD without to much trouble is Intel and VIA. But if intel aquired AMD then they would be charged with monopoly charges. Dont believe VIA has the funds to buy AMD and any other would invalidate the X86-64 cross liscencing making a patent mess of current desktop processors.

 

I dont have the details, but aquiring someone who is liscensing X86 is very difficult

IIRC it's extremely difficult because the licenses are non-transferrable. 

 

I can see RTG being acquired by Intel at some point, which might honestly be for the best. AMD's fighting a two front war with very limited resources. Time to trim the fat.

[asus killer]

if they didn't went under selling bulldozers, now that they are back in the CPU business they sure aren't going down.

[seon123]

[paddy-stone]

Lets not forget fanboys, without competitors you get stagnation of products, as they have nobody to beat they can do like intel did and just go with a 4 core 8 thread for it's consumer desktop top tier for many years. I'm not fanboying here, but without AMD, Intel would most likely still be feeding you that 5% or whatever increase in IPC and that's it, year on year.

And TBH who can blame them? if a company doesn't have to innovate and spend billions on r&d and can instead just make some fairly minor changes and still rake in billions per quarter. I'm not naive enough to think AMD would do any different, what drives innovation is wanting to be good at what you do and getting market share. All I can say is AMD has come through with it's Ryzen/EPYC CPUs, I buy what's a good price/performace and AMD has it (for me anyway) ATM, and if things changed and intel started charging less or increased core counts more, then I'd maybe go back to them... There's no point in going with a worse price/performance just to be a fanboy, that's insane.

[leadeater]

2 hours ago, DrMacintosh said:

Not much profit, but it is profit meaning everyone got their paychecks and everything they needed to pay for got paid for. That is the important part. 

@SC2Mitch

AMD also paid off 155 mil in long term debt, however it looks like they increased short term debt by 153 mil. AMD for a number of years has been working to pay off as much long term debt as possible, I looked at it a while ago and is a big reason they have been posting low profits or losses as a lot of funds have been used for that.