Santa Clara During the chip giant Intel struggling with delays in its next processor generation is the smaller competitor AMD on the catch-up. In the past quarter, AMD increased sales 26 percent year over year to $ 1.93 billion (approximately € 1.65 billion). Profits jumped from $ 35 million to $ 157 million. The stock rose by a good ten percent in after-hours trading on Tuesday.
AMD saw higher sales of its Ryzen brand PC chips and Epyc processors for data centers. Among the customers are among others Google and Amazon with their huge server facilities. Data center business now accounts for around 20 percent of AMD revenue, as company boss Lisa Su emphasized. But even with PC chips, AMD had the highest sales in 12 years. The company’s market share has been growing continuously for almost three years.
Intel also increased sales by a fifth to $ 19.7 billion last quarter. However, this was overshadowed by the announcement that the next processor generation with structure widths of 7 nanometers would not be released until six months later than planned at the end of 2022 at the earliest. Meanwhile, AMD already offers products in the 7-nanometer process. The lower the structure widths, the more processors fit on a semiconductor wafer during production. In addition, the chips work more efficiently and energy-saving.
Intel explained the delay with a defect in the production process that has now been discovered. The chip leader has its own factories, while AMD focuses on manufacturers like TSMC leaves from Taiwan.
AMD forecast sales of $ 2.55 billion for the current quarter, exceeding analysts’ forecasts. Contrary to expectations, the demand for server chips and notebook processors will remain strong in the second half of the year, Su said. Previously, experts had assumed that the need for a boost thanks to home work and increased data traffic would quickly subside in the Corona crisis.
AMD now has a market share of around ten percent in the server market, said Su. In 2017, the figure was one percent before a new chip generation brought about the turn. The recovery was also accompanied by a steep rise in the share price: AMD had started 2017 at a price of around $ 11 – in post-trading on Tuesday it rose to over $ 75.
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