Resurgent AMD will likely cause Intel and Nvidia quite a few problems.
AMD is one of the few tech companies to have posted positive earnings results on on Wall Street. The American chip-maker withstood challenging situations including the cooling of a once-hot cryptocurrency market, deteriorating macroeconomic conditions and the slowing economy in China.
Shares of AMD sky-rocketed as the company's fourth-quarter revenues rose by 6% to $1.42 billion as against same quarter previous year. This sharp rise came at a time when Nvidia’s CEO Jensen Huang cautioned towards a disappointing and challenging Q4, before its fourth quarter and fiscal year 2018 financial results are announced.
Substantial increase in revenue and net incomeAlthough, the chipmaker's Q4 revenue of $1.42 billion missed Wall Street’s $1.44 billion estimation by a small margin, AMD’s annual 2018 financial results reported $6.48 billion in revenue and $337 million net income. The numbers were a substantial increase over its previous year’s figures which showed a total $5.3 billion in revenue and $33 million in net income.
Much of this rise in growth can be attributed to AMD’s Ryzen chip benchmarks. AMD’s Ryzen series CPUs and APUs deliver an unmatched price-to-performance ratio that Intel is failing to keep up with. On the GPU front, Vega VII showcases pretty impressive benchmarks and the rumoured Navi chips which are expected to deliver remarkable performance at an affordable price. AMD is also rumoured to provide hardware for the next generation Xbox and PS4.
AMD CEO Dr Lisa Su also hopes that with the introduction of the 2nd generation Ryzen mobile chips and 3rd Gen desktop chips, AMD will see a further 30% increase in Ryzen desktop processor sales and a 50% increase in notebook processor sales.
The company has already seen a 50% increase in Ryzen desktop processor shipments and are said to be doubling enterprise-grade Epyc CPU shipments. AMD attributes its growth to a 50% increase in Ryzen desktop processor shipments and doubling enterprise-grade Epyc CPU shipments since the previous quarter.
A bright future aheadDr Lisa Su in a recent press conference said, "Despite near-term graphics headwinds, 2019 is shaping up to be another exciting year driven by the launch of our broadest and most competitive product portfolio ever with our next-generation 7nm Ryzen, Radeon, and EPYC products.”
