AMD crushed expectations with its first-quarter 2021 financial results today with record quarterly revenue of $3.45B, an increase of 93% year over year (YoY). AMD grew in every segment despite constant product shortages for its consumer CPUs and GPUs at retail, a byproduct of record demand and pandemic-spurred supply chain disruptions.
It's no secret that AMD has been plagued by shortages of consumer CPUs and GPUs, but the company is obviously selling every piece of silicon it can punch out. AMD raked in $2.1 billion for the computing and graphics segment (consumer CPUs and GPUs), a 46% improvement over the prior year driven by Ryzen and Radeon sales.
AMD's Ryzen processors set records for revenue and average selling prices (ASPs). AMD also says it has increased its desktop PC market share again, an encouraging sign for the company after Intel stole back some desktop PC market share last quarter. However, Intel reported last week that it suffered a sharp decline in ASPs for both its notebook and desktop PC chips due to a shift in its sales mix to lower-end processors. That shift is likely due to AMD's continued performance lead with its Ryzen 5000 processors and strong sales of its higher-end models. AMD CEO Lisa Su remarked that AMD remains firmly focused on its high-end products.
AMD is also doing well in the notebook segment, with Su remarking, "We delivered our sixth straight quarter of record mobile processor revenue based on sustained demand for Ryzen 4000 series processors and the launch of our new Ryzen 5000 series processors." Notably, Intel also sold a record number of notebook PC chips last quarter, but it suffered a sharp 43% decline in average selling prices.
Su also said that the company had doubled its Radeon 6000 GPUs sales over the prior quarter and that GPU supply will improve in the next quarter.
AMD's Enterprise, Embedded, and Semi-Custom (EESC) group, which covers data center chips and game consoles, was up an incredible 286% over last year as it raked in $1.35 billion, largely driven by strong EPYC processor sales that more than doubled (consoles declined slightly during the quarter).
Notably, during its last earnings report, Intel claimed that its data center processor business suffered from the second quarter in a row of cloud "digestion," meaning customers were still working through their existing inventory of chips, leading to a massive drop in its own revenue for this important high-margin segment. On the surface, it appears that some of that drubbing took place at the hands of AMD's EPYC Rome and Milan chips. AMD's data center revenue accounted for a 'high-teens' percentage of the company's revenue.
AMD reported gross margins of 46%, which is flat for the year. The company has also raised its guidance for the year by $1.3 billion dollars, indicating that it expects the impressive performance will continue throughout the end of the year. That's an increase from the previously-projected 37% annual growth to a projection for 50% annual growth. Su commented that this increased projection is due to increased demand in both the data center and consumer markets.
Overall, AMD posted an almost flawless quarter, especially in light of the current state of the global market. AMD also guides for an impressive $3.6 billion next quarter, an impressive 86% YoY gain during what is historically a slower quarter.
