In the second half of the year, the global semiconductor industry has encountered the problems of tight production capacity, shortage of goods and price increases. However, for AMD, the past Q2 quarter will undoubtedly be a bumper harvest. The ASP of Ryzen, Xiaolong and Radeon graphics cards have increased in average prices.
Interest rates are expected to reach a record level of 48%. AMD will release its Q2 quarterly earnings report on July 27, and there is still a week away, but Wall Street financial analysts generally believe that AMD’s performance in the quarter will be strong and will exceed the previously announced revenue guidance.
At the end of April this year, AMD released its Q1 quarterly report. Revenue was US$3.445 billion, an increase of 93% compared with US$1.786 billion in the same period last year, and an increase of 6% compared with US$3.244 billion in the previous quarter; net profit was $555 million, an increase of 243% compared with 162 million U.S. dollars in the same period last year, and a 69% decrease compared with 1,781 million U.S. dollars in the previous quarter.
AMD expects Q2 quarter revenue to be US$3.6 billion, with a fluctuation of US$100 million, an increase of 86% year-on-year and a 4% quarter-on-quarter growth. The non-GAAP gross margin can reach 47%. In the past two years, AMD’s financial indicators have significantly improved not only revenue but also profitability. In the past few years, it has been below 40% for a long time. This is unhealthy for semiconductor companies. In the past two years, it has increased steadily, and it was 46% in Q1, Q2 is expected to be 47%, but analysts take a higher view and think it will reach 48%.
The higher gross profit margin means AMD’s ability to make money has improved. The main reason is that AMD’s high-end products are now on the market, especially the latest Ryzen 5000 series. The ASP has a visible increase compared to before. Netizens complained about the 6-core Ryzen. 5 5600X have been sold to more than 2000, which is also the key to AMD’s gross profit margin increase.
Of course, even a 48% gross profit margin is still much lower than a friend’s. NVIDIA’s gross profit margin exceeds 65%, and Intel’s non-GAAP gross profit margin in Q1 is 58.2%. However, Intel is an IDM company and has its own Fabs have high costs and need high margin support.
