AMD Announces Third Quarter 2021 Financial Results

AMD announced the results for the third quarter of 2021, with revenue of $4.313 billion, higher than the previous estimate of $4.1 billion, achieving year-on-year growth of 54% and an increase of 12% compared to the previous quarter’s $3.850 billion. Gross profit margin remained at 48%, higher than 44% in the same period last year. Net profit was $923 million, an increase of 137% year-on-year, and an increase of 30% compared with the $710 million in the previous quarter.

In this quarter, AMD achieved six consecutive quarters of revenue growth, breaking the single-quarter revenue record again. The main driving force for growth came from the enterprise, embedded, and semi-custom business units. Custom chips and data center products from game consoles drove the increase in revenue, with revenue of $1.915 billion. The Computing and Graphics segment is still the main source of revenue, but the growth rate is not the fastest. In the past quarter, revenue was $2.398 billion.

Although AMD’s gross profit margin remains at 48%, it is still below its 50% target. In addition, although the revenue data is very good, the cash flow has continued to decline. AMD said that the reason for the decrease in cash flow was the investment in “long-term supply chain capacity“, but it did not further specify what kind of investment it was. In the past quarter, AMD also repurchased $750 million of stock, which can also be reflected in the increase in earnings per share.

AMD expects revenue in the fourth quarter of 2021 will continue to climb, reaching $4.5 billion (with a fluctuation of $100 million), an increase of approximately 39% year-on-year, and an increase of approximately 4% month-on-month. In addition, the gross profit margin may increase to 49% or 49.5%, which is closer to AMD’s goal of reaching 50%.