AMD Announces 2022Q1 Earnings: Revenue continues to record

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AMD reported first-quarter 2022 revenue of $5.887 billion, up 71% year-over-year and 22% sequentially, driven by higher revenue from Enterprise, Embedded and Semi-Custom, and Xilinx. The first quarter 2022 earnings report includes selected quarterly results following the recent acquisition of Xilinx, and the balance sheet reflects assets related to the acquisition of Xilinx, which closed on February 14, 2022. Excluding Xilinx’s earnings, AMD also posted a record $5.3 billion in the first quarter of 2022.

In the quarter, AMD’s gross margin was 48%, up 2% year over year and down 2% sequentially. The year-on-year increase was mainly attributable to the revenue of server processors and Xilinx, and the amortization of some intangible assets and the related costs of acquisitions caused the quarter-on-quarter decline. Net income was $786 million, up 42% from $555 million in the prior-year period and down 19% from $974 million in the prior quarter, and earnings per diluted share were $0.56, up from $0.45 in the prior-year period. Operating cash flow was a record $995 million, compared with $898 million in the year-ago quarter and $822 million in the prior quarter.

Computing and Graphics revenue was $2.8 billion, up 33% year over year and 8% sequentially, primarily driven by higher sales of Ryzen processors and Radeon graphics cards. Enterprise, Embedded, and Semi-Custom revenue were $2.5 billion, up 88% year over year and 13% sequentially, primarily driven by higher sales of EPYC server processors and semi-custom SoCs. Part of Xilinx’s quarterly revenue was $559 million, or over $1 billion on a full-quarter basis, up 22% year over year, driven by sales growth for Xilinx in all major end-market categories.

AMD’s revenue performance in the first quarter of 2022 beat analysts’ expectations, as did the second quarter. AMD expects revenue for the second quarter of 2022 to be approximately $6.5 billion, plus or minus $200 million, an increase of approximately 69% year-over-year and approximately 10% sequentially. In addition, AMD expects full-year 2022 revenue to be approximately $26.3 billion, an increase of approximately 60% from 2021 and up from its previous forecast of approximately 31%, with the addition of Xilinx, the server market and semi-custom business will be the main drivers force.

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