Advanced Micro Devices (AMD) reportedly earned $3.9 billion in revenue during the second quarter of 2021, marking a huge 99% year-on-year growth as the company inches closer to its preferred gross margin of 50%.
According to AMD’s earnings results for the quarter, the high-performance processor maker netted $1.8 billion after deducting the cost sales from the main sheet, thereby posting a 2% higher gross margin in Q2 (48%) than Q1 (46%).
AMD credits its monumental revenue growth during the second quarter to big sale numbers generated from sales of the Ryzen 5000 CPUs and RDNA 2 GPU lineup.
“Our business performed exceptionally well in the second quarter as revenue and operating margin doubled and profitability more than tripled year-over-year,” remarked AMD CEO Lisa Su.
We are growing significantly faster than the market with strong demand across all of our businesses. We now expect our 2021 annual revenue to grow by approximately 60 percent year-over-year driven by strong execution and increased customer preference for our leadership products.
Added to this, the second quarter also spelled dollars for the company’s data center products. In this regard, AMD suggested it’s a “5th straight quarter of record server processor revenue, including demand for 2nd and 3rd Gen EPYC processors”.
In light of its growth in terms of margins earned and value-added, AMD forecasts its Q3 revenue to surpass $4 billion without any problems, well above Wall Street expectations.