AMD’s revenue soars 19 percent on Ryzen and Radeon sales

AMD’s revenue is up 19 percent in the past three months on strong sales of Ryzen processors and Radeon graphics cards. The chip company is still making a loss, but that fell to $ 16 million.

That the Ryzen and Radeon sales in particular were responsible for the increase in turnover is apparent from the results of the Computing and Graphics department of AMD, which includes the processors and GPUs. Segment sales increased 51 percent year-on-year to $659 million.

Not only did AMD sell more processors and GPUs, the arrival of Ryzen caused the average price of the processors to rise and the average selling price of Radeon products also increased. AMD expects further improvement in results in the next six months as the Ryzen Threadripper for the high-end, Ryzen Pro for the business market and the Ryzen mobile chips for laptops come to market.

Part of the good Radeon sales has to do with using the video cards for cryptocoin mining, admits Lisa Su, CEO of AMD, according to Seeking Alpha’s transcript of its quarterly earnings review. But the company continues to focus on the core gamers market and does not factor mining sales into its quarterly earnings expectations. AMD does not see this use as a major long-term growth driver.

AMD’s Enterprise, Embedded, and Semi-Custom business unit had 5 percent lower quarterly revenue than last year. AMD supplies semi-custom-socs for the Xbox and PlayStation and the big growth of this generation of consoles is over. Microsoft will release the Xbox One X in November, but AMD expects sales from these chips to decline throughout the year. AMD does have high expectations for Epyc: the company’s new server platform.

AMD’s quarterly revenue was $1.22 billion. For the current quarter, the company expects it to be 23 percent higher than the previous quarter and for the full year, sales are expected to be 15 percent higher.