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As the total 12 months 2021 earnings season rolls alongside, the subsequent main chip maker out of the gate is AMD, who has been having fun with a really constructive trajectory in income and income over the previous few years. The corporate has continued to construct upon the success of its Zen architecture-based CPUs and APUs in each the shopper and server areas, in addition to a full 12 months’s income for the APUs powering the hard-to-find Ps 5 and Xbox Sequence X|S. Consequently, these merchandise have propelled AMD to a different file quarter and one other file 12 months, as the corporate continues to hit income information whereas recording some sizable income within the course of.

For the fourth quarter of 2021, AMD reported $four.8B in income, a 49% soar over the identical quarter a 12 months in the past. Consequently, This fall’2021 was (but once more) AMD’s finest quarter ever, constructed on the again of robust gross sales throughout your complete firm. In the meantime, resulting from final 12 months’s uncommon, one-off achieve associated to an earnings tax valuation allowance, AMD’s GAAP web earnings did dip on a year-over-year foundation, to $974M. In lieu of that, AMD’s quarterly non-GAAP web earnings (which excludes the tax allowance) was up 77% year-over-year, which is an excellent larger soar than what we noticed in This fall’20.

AMD’s continued development and total success has additionally boosted the corporate’s gross margin to 50%, marking the primary time since at the least the flip of the century that AMD has crossed the 50% mark. Moreover underscoring the general profitability of AMD’s operations, gross margins are additionally indicator of the well being of an organization; and for a fab-less semiconductor agency, 50% is an excellent quantity to beat certainly. AMD is now inside 5 share factors of Intel’s gross margins, a feat that at one time appeared unattainable, and highlighting AMD’s ascent to a top-tier chip agency.

As for AMD’s full-year earnings, the corporate has been having nice quarters all 12 months now, so unsurprisingly that is mirrored of their full-year outcomes. Total, for 2021 AMD booked $16.4B in income, which was a rise of 68% over 2020, and, in fact, units a brand new file for the corporate. AMD’s gross margin for the 12 months was 48%, up three.7 share factors from FY2020, and reflecting how AMD’s gross margins have been on the rise all through your complete 12 months.

All of this has performed out properly for AMD’s profitability, as properly. For the 12 months AMD booked $three.2 billion in web earnings, and in contrast to 2020, there are not any one-off tax valuations inflating these numbers. Amusingly, even with that $1.3B valuation for 2020, AMD nonetheless beat their 2020 web earnings by a large margin this 12 months, bringing residence $672M extra. Or to have a look at issues on a non-GAAP foundation, web earnings was up 118% in a 12 months, greater than doubling 2020’s figures. Suffice it to say, the chip crunch has been very form to AMD’s backside line prior to now 12 months.

Shifting on to particular person reporting segments, 2021 was a 12 months the place all of AMD’s enterprise models have been seemingly firing on all cylinders. Consumer CPUs, GPUs, server CPUs, sport consoles; 2021 will go down because the 12 months the place no one might get sufficient of AMD’s silicon.

For This fall’21, AMD’s Computing and Graphics section booked $2.6B in income, a 32% enchancment over the year-ago quarter. In line with the corporate, each Ryzen and Radeon gross sales have performed very properly right here, with each product traces seeing additional gross sales development. On the CPU/APU entrance, common sale costs have been up on each a yearly and quarterly foundation, reflecting the truth that greater priced merchandise are making up a bigger share of AMD’s processor gross sales. And whereas AMD doesn’t supply a selected share breakdown, the corporate is reporting that pocket book gross sales have been as soon as once more the main think about AMD’s Ryzen income development, approaching the again of robust demand for greater margin premium notebooks. And, primarily based on total development within the variety of processors bought, AMD believes that they’ve elevated their market share (by income) for what could be the seventh straight quarter.

In the meantime on the GPU entrance, AMD is reporting that graphics income has doubled on a year-over-year foundation. In line with the corporate, GPU ASPs are up on a year-over-year foundation as properly, although curiously, they’re truly down on a quarterly foundation resulting from what the corporate is attributing to the product combine – which in flip is presumably the ramp-up and launch of their first Navi 24-based merchandise such because the RX 6500 XT. AMD’s ready remarks don’t embody any mentions of cryptocurrency, but it surely goes with out saying that for the final 12 months AMD has encountered little bother in promoting just about each GPU it may possibly get fabbed.

Lastly, AMD additionally folds its information middle/enterprise GPU gross sales beneath the C&G section. There, AMD is reporting that income has greater than doubled on a YoY foundation, because of final 12 months’s launch of the Intuition MI200 accelerator household. Sadly, AMD doesn’t supply any unit or income breakouts right here to get a greater concept of what information middle shipments are like, or how a lot of these gross sales have been MI250X accelerators for the Frontier supercomputer.

In the meantime, AMD’s Enterprise, Embedded and Semi-Customized section booked $2.2B in income for the quarter. The 75% year-over-year improve in income was pushed by each improved EPYC gross sales in addition to greater semi-custom gross sales.

As is normally the case, AMD doesn’t break aside EPYC and semi-custom gross sales figures, however the firm is noting that information middle, server, and cloud income – basically every little thing EPYC besides HPC – all greater than doubled versus the year-ago quarter. All of which propelled AMD to doubling EPYC gross sales versus This fall’20, setting new information within the course of. AMD has additionally famous that they’ve shipped their first V-cache enabled EPYC CPUs (Milan-X) to Microsoft, who’s utilizing them in an upcoming Azure occasion sort.

As for semi-custom gross sales, AMD is using a wave of unprecedented demand for sport consoles that has Sony and Microsoft taking each console APU they will get. Moreover, regardless of this occurring now for the final 12 months and a half, AMD nonetheless expects semi-custom gross sales income to additional develop in 2022 on the again of continued orders from console makers.

With all of that mentioned, nonetheless, as AMD’s revenues have elevated, so have their prices. For each the Consumer and Enterprise segments, the corporate is reporting that working earnings development has been partially offset by greater working bills. This encompasses each greater wafer costs from TSMC, in addition to greater prices for issues comparable to transport. AMD can greater than soak up the hit, in fact, but it surely’s a mirrored image on how AMD has wanted to spend extra with a view to safe wafers and provides on an ongoing foundation.

Trying ahead, AMD is (understandably) as soon as once more anticipating a really promising first quarter of 2022 and past. AMD has loved vital income and market share development over the previous few years, and the corporate’s official forecasts are for that to proceed into 2022. And, particularly within the midst of the present and ongoing chip crunch, as long as demand holds, silicon could as properly be gold for as worthwhile as it’s to a few of AMD’s clients.

To that finish, AMD is formally projecting income development of 31% for 2022, which might deliver AMD to round $21.5B in gross sales. Given AMD’s 2021 estimate, that is doubtless as soon as once more conservative, although it’s noteworthy in that it’s a bit much less development than AMD was projecting at this level a 12 months in the past for 2021. Extra curiously, maybe, is that AMD expects the non-GAAP gross margin for the 12 months to land at round 51%, which even when it’s additionally a conservative estimate, would nonetheless be a giant accomplishment for AMD.

Driving this development will probably be a brand new slate of merchandise for a lot of of AMD’s essential product traces. Together with ramping deliveries of Milan-X EPYC processors, AMD can also be slated to ship their Genoa EPYC processors, primarily based on AMD’s Zen four CPU structure, later this 12 months. Zen four may even be making its look in Ryzen processors in H2’22, and within the meantime AMD has simply launched their Zen3+ primarily based Ryzen 6000 APUs for laptops. Lastly, GPUs primarily based on AMD’s forthcoming RDNA three structure stay on the roadmap to be launched later this 12 months as properly.