AMD Posts Record Fourth Quarter 2021 Results
RDNA 2 architecture GPU announced by AMD at "CES 2022" [Click to enlarge] Source: AMD
Despite continued supply chain disruptions, many technology companies, including AMD, are reporting healthy quarterly results. On February 1, 2022, AMD announced fourth quarter 2021 revenue of US$4.8 billion, up 49% year over year, surpassing analyst estimates of US$4.53 billion. result. Gross profit margin increased by more than 5% year-on-year to 50%, marking a record high for the second consecutive year. AMD Financial Summary [Click to enlarge] Source: AMD However, it remains to be seen whether AMD and other technology companies will be able to weather the supply chain disruptions that show no signs of abating. AMD also announced that it expects to complete its acquisition of FPGA specialist Xilinx by the end of the first quarter of 2022. AMD's share price rose 11% in after-hours trading following strong earnings reports, including annual 2021 total revenue of US$16.4 billion, up 68% from 2020. Lisa Su, CEO of AMD, said the strong performance was due to the rapid growth of the data center market, including the increased adoption of EPYC processors for cloud and other enterprise customers. It is explained that there is AMD's data center division accounts for more than 20% of total sales. "We expect continued growth in 2022," Su said, based on customer demand for AMD products for next-generation PCs, gaming, and data centers. The company announced the desktop GPU "RDNA 2" at "CES 2022" (January 5-7, 2022, Las Vegas, Nevada, USA). In addition, it revealed plans to release the "Ryzen 6000" series of processors for mobile, and introduced a new "Zen 3+" processor core that improves power efficiency and battery life.
Achievable profit target even amid supply chain disruptions
AMD expects sales in the first quarter of 2022 to reach approximately US$5 billion, an increase of 45% year-on-year. Expect. It also expects full-year sales to rise 31% to US$21.5 billion from 2021, surpassing Wall Street's forecast of US$19.3 billion. Analysts have also voiced concerns about AMD's ability to achieve this optimistic guidance, given that supply chain disruptions are expected to persist. “We are investing US$1 billion in the long-term capacity building of our supply chain, and we believe we can reach our profit target,” Su countered. “Understanding the growth we have achieved from a product perspective and the recognition we have received from our customers, we have been working to improve our supply chain over the past four to five quarters,” Su said. We have invested heavily in capacity, back-end capacity, and we are very pleased with the progress our supply chain is making towards meeting the guidance of 2022. Frankly, our goal is to It's about making sure there's enough supply to meet demand." As for AMD's Xilinx acquisition, observers question how the FPGA specialist will complement AMD's product portfolio and expand into other markets such as industrial, automotive and 5G. are watching. "I'm not too worried about progress in that regard, but it's too early [to comment]," Su said. It will be a plus when applying EPYC in the market." When asked by an analyst about potential technology and revenue synergies, Su said, "The synergies with Xilinx are very good in terms of customer base and channels. "The product has great diversion. Xilinx's technology fits very well with ours." China's State Administration of Market Regulation approved AMD's acquisition of Xilinx on January 27 (local time). The deal is still subject to approval by the US Federal Trade Commission. AMD plans to complete the transaction during the first quarter of 2022.
EE Times Japan