AMD Announces 2021Q4 and Full Year Earnings
AMD reported fourth-quarter 2021 results, with revenue of $4.826 billion, representing 48% year-over-year growth and 12% sequential growth, beating analyst expectations. Gross margin improved to 50%, up more than five percentage points year over year and about two percentage points sequentially, driven primarily by a richer product mix. Net profit was $974 million, down 45% year-on-year and up 6% month-on-month.
Enterprise, Embedded, and Semi-Custom segment revenue were $2.242 billion, an increase of 75% year-over-year and 17% sequentially, mainly due to higher sales of EPYC server processors and semi-custom SoCs. Computing and Graphics revenue was $2.584 billion, up 32% year over year and 8% sequentially, driven by Ryzen processors and Radeon graphics. The difference is that the average selling price (ASP) of Ryzen processors increased year-over-year and quarter-over-quarter, while the average selling price of Radeon graphics cards decreased sequentially due to changes in product line mix.
AMD’s 2021 revenue of $16.4 billion is a 68% increase from 2020. The gross margin was 48%, an increase of three percentage points compared to 2020, driven by a combination of EPYC, Ryzen, and Radeon. Net income was $3.2 billion, up from $2.5 billion last year, including a $1.3 billion income tax benefit recorded in the fourth quarter of 2020. In addition, AMD’s cash from operations was $3.5 billion, up from $1.1 billion last year, which should help support future revenue growth.
AMD expects revenue to continue to climb in the first quarter of 2022, reaching $5 billion, up 45% year-over-year and 4% sequentially. Meanwhile, full-year 2022 revenue is expected to be $21.5 billion, up 31% year-over-year and topping analysts’ previous forecast of $19.3 billion.
