Needing no introduction, AMD this afternoon is the second of the PC chip titans to announce their earnings for the quarter and for the full 2020 …
Needing no introduction, AMD this afternoon is the second of the PC chip titans to announce their earnings for the quarter and for the full 2020 calendar year. The company has continued to ride high on the success of its Zen architecture-based CPUs and APUs, as well as the recent launch of the Playstation 5 and Xbox Series X| S. As a result, these products have propelled AMD to another record quarter and another record year, as the company continues to hit revenue records while recording an increasingly tidy profit in the process. For the fourth quarter of 2020, AMD reported $3.24B in revenue, a 53% jump over the same quarter a year ago. As a result, Q4’2020 was (once again) AMD’s best quarter ever, built on the back of strong sales across virtually the entire company. And AMD’s gross margin has held steady at 45%, the same as Q4’19. Meanwhile, in what was already a strong quarter for the company, AMD also realized some one-off gains related to an income tax valuation allowance, which added another $1.3B to AMD’s net income. As a result, the company booked a massive profit of $1.78B for the quarter alone. Otherwise, excluding that one-off gain and looking at AMD’s non-GAAP results, the company still booked 66% more in net income in Q4’20 than they did the year-ago quarter. So not only is AMD pulling in record revenues for the quarter, but that is translating into much higher profits as well. As for AMD’s full-year earnings, the company has been having strong quarters all year now, so unsurprisingly this is reflected in their full-year results. Overall, for 2020 AMD booked $9.76B in revenue, which was an increase of 45% over 2019, and once again a record for the company. Amusingly, AMD’s gross margin for the entire year was also 45%, which is one percentage point higher than 2019’s. Like AMD’s quarterly results, their full-year results are also distorted a bit by their one-off tax benefit.
