The Tide is Turning: AMD Turns Loss into Profit Again
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varkkon
Amazing! I am very happy for all of the team at AMD they are an awesome company. Congrats team, the Threadripper and Ryzen CPUs are an awesome achievement.
I look forward to the Xbox One X and the new GPUs and CPUs in the future, all the best guys.
xIcarus
That's great news, I really hope they keep up this pace. They've really disrupted Intel's pretty little slumber on the CPU market.
Texter
Luckily for AMD they're not being paid in Bitcoin, they're just generating it...
BReal85
Very nice results. It just shows how many Ryzens were sold. A lot. Much better value for the money compared to Intel. That's why (or at least was one reason) AMD (ATI) cards sold better then nowadays: they had better value for the money in most GPU categories (nowadays it's only competitive in mid range). It's every users' interest to get better, so we will see better products on both sides, in both the CPU and GPU sections.
And X1X is just coming, which should sell much better than PS4 Pro. Ryzen update may come in early 2018. Promising times for AMD.
H83
Kudos for AMD, they finally turn it around!
alanm
Great news. Hopefully they can use that profit wisely to restore that intense rivalry vs their competition and push prices down. They've succeeded vs Intel, but still behind on the GPU front. I want to see something that surpasses Nvidia in performance and wattage all the way up to the flagship level, not just the mid-range segments.
BLEH!
Woohoo, good news. Now Raven Ridge, if you please 🙂
SSD_PRO
Sorry to be the wet blanket here but this story is skipping the other and more meaningful half of the earnings call. While AMD did see a profit of 71 million (good), the margin was not good compared to revenue. When your sales are in the 10 digit range and then we talk profit in the 8 digits alarms go off. The profit and dividend would be good if the forecast was for that to grow or continue. Their forecast for Q4 was a stiff warning of decline. Shares have already dropped 13% from yesterday's 14.25 close to 12.65 in AHT. Keep in mind AMD traded @ 14.95 the evening before Ryzen launched. The stock is still way down since that release at lower volume. The tone here should be more of encouragement and possibility.
D3M1G0D
RealNC
I do not understand economics, so I have to ask:
If they weren't making any money whatsoever, how do they still exist? If that happens to most people, they end up homeless or die.
BReal85
Embra
Great news!
heffeque
kruno
Honestly disappointing. I was expecting much bigger sales of Ryzen and way bigger revenue to the tune of min. 3B US $.
Well this shows that only thing that keeps AMD afloat is enthusiasts and not general public.For general public AMD may not even exist otherwise they would have much bigger revenue thanks to the great performance of ZEN architecture.
Denial
It's good news but I lost about $3500 yesterday after market close, so bad news for me - AMD is trending in the right direction.
History has shown us that changes in the OEM channel takes time. Back in the K8 days AMD not only had a price advantage but a performance advantage as well. It took them 3 years to match Intel's penetration in OEM market. If you're expecting results after a couple quarters you're going to be disappointed.
If AMD can keep Zen competitive into the near future they'll slowly start crawling back. I think ravenridge is going to be a big seller for them - Intel charges outrageous prices for it's Core-M devices because they literally have zero competition in the ultrabook/windows tablet space. AMD is going to be able to get in there and potentially deliver a much stronger product GPU wise but also able to undercut Intel by a fair amount.
Zen was good but the next year or so with Zen+ is going to be the make or break for their CPU division financially.
BReal85
heffeque
D3M1G0D
JamesSneed
This is great news not sure why so many are disappointed they are moving in the right direction. Gaining market share is going to take time, years. If you have AMD stock I get it but you had to know it was a long game 2-5 years. If you are an enthusiast this is awesome, we need AMD to keep pricing down and performance increases coming.
1) Datacenter chips will need a couple more years to gain much market share, this is a long game.
2) They haven't really stepped into the high volume low wattage or all in one SOC's but Raven ridge is coming to fill that gap.
3) AMD will be at a process disadvantage to Intel(yes both are 14nm but Intel is more dense and can get to higher frequencies) until they get on GloFlo's 7nm process. This should help them be more competitive all around due to lower power and higher frequencies which the current GloFlo process is inhibiting greatly.
fantaskarsef
I think it's good to see that at least in the CPU competition there has been some movement, and competition keeps the market alive. So grats to AMD, time to pay back those loans. I just hope they don't get greedy and start to let people go because of investor's preasure to pay back faster.