AMD has made a roaring come back into the CPU and GPU game over the last couple of years. This can be seen no clearer than with their financial results over the last two quarters. recently revealed its Q4 2019 sales numbers during its fiscal year reporting for 2019. In short, AMD is in the strongest position they’ve been in a long time heading into 2020, and it looks like NVIDIA and Intel, their primary competitors within the GPU and CPU spaces respectively, will be caught flat-footed.
Revenue is up, profits are up, and everything is looking green for team red. The releases of the newest generation of Ryzen chips left Intel scrambling for cover. The enterprise-focused giant seemingly rushed 10980XE and related CPUs to market, and even cut prices on some SKUs, to compete with AMD. It’s been years since AMD had such a strong offering in these areas, and it shows in their earnings report.
So How Did AMD Fare?
The company is booming, in short. AMD reported gross earnings of $2.13 billion. This is an 18%growth from the quarter prior in 2019, and it’s an astonishing 50% better compared to the same time last year. Profits are up as well, with gross margin jumping up to 45% overall. That’s a net increase of 38% compared to 2018. It looks like the 3960x and related Ryzen product launches really rocketed AMD’s market share.
Then there’s the growth that really matters, operating income. This adjusted take increased from $28 million a year ago to $348 million for the current quarter. Net income also saw a boost to $170 million this quarter, compared to $28 million a year ago and $186 million in the last quarter.
The real shocker is that AMD was able to pay down a major chunk of their outstanding debt obligations. At the end of 2019, the $1.08 billion the company held on its books had been reduced to a staggering $563 million.
Dr. Lisa Su, who serves as president and CEO for AMD, is optomistic about the future for the company following the report. According to her “marked a significant milestone in our multi-year journey,” and the company looks forward to what comes next. Specifically, we can expect AMD to gain some more ground from the incoming launch of the Xbox Series X and PlayStation 5. Rumors are swirling that the PS5 and new Xbox both use modified AMD APU variants, which should help boost AMD’s earnings in 2020. Andnd then there’s the impending launch of the Ryzen 7 4000 CPUs will kick even more share in AMD’s favor in the prosumer market.
If you want to dive deeper, the full financial reports are available over on AMD’s site.