Lisa Su from AMD is starting over: here is my job
She did it again. Longtime Sarge frontrunner Advanced Micro Devices (AMD) released the company’s third quarter financial results on Tuesday night, and wow … She did it again. If you read me often, you will know that I’ve been a fan of AMD CEO Lisa Su pretty much since she started transforming AMD, and quite simply… her and her company, especially lately, never cease to amaze. .
For the review period, Advanced Micro Devices posted adjusted EPS of $ 0.73, up 78% year-over-year, and GAAP EPS of $ 0.75. By either metric, Lisa beat Wall Street. The company generated sales of $ 4.31 billion. That number also exceeded expectations and was sufficient for annual growth of 53.9%, a fifth straight quarter leading to revenue growth above 50% and eight consecutive quarters above 25%.
In addition to nearly 54% revenue growth, AMD posted 780% year-over-year gross margin growth to 48% gross margin, up from 44% in the third quarter of 2020. Operating income has exploded 111%, from $ 449 million a year ago to $ 948 million. Net revenue? Let’s do it. 137% growth from $ 390 million to $ 923 million. Rock and freakin ‘Roll. Let’s make segments …
IT and graphics
Segment revenue jumped 44% to $ 2.4 billion, while operating income rose 34% to $ 513 million. The segment’s quarterly performance was driven by a richer mix of Ryzen processor sales, premium Radeon graphics sales and AMD Instinct data center GPU sales.
Enterprise, embedded and semi-personalized
Segment revenue increased 69% to $ 1.9 billion, while operating profit climbed 284% to $ 532 million. Performance here was driven by increased sales of EPYC processors as well as demand for semi-custom created products.
It is golden. No kidding. The company’s cash balance (cash, equivalents and short-term investments) increased 57.5% to $ 3.608 billion year-to-date. Total current assets increased by nearly $ 2 billion in nine months, while total assets increased by just over $ 2 billion. Not only do current assets eclipse current assets, but current assets (and especially total assets) eclipse total liabilities minus equity. The business has short-term debt, but literally no long-term debt on the books. In fact, equity is about 64% of the entry of total liabilities and combined equity. Still, the company repurchased 7 million common shares for $ 750 million in the third quarter. This is called kicking the tail, my friends.
For the full year, AMD is orienting its revenue towards growth or growth of 65% of all companies. Some of you may recall that Lisa Su headed for 37% growth for FY2021 at the end of 2020. The most recent forecast from which this is rising was 60% growth. The company expects to maintain an adjusted gross margin of 48%. For the current quarter, AMD expects revenue to reach nearly $ 4.5 billion to plus or minus $ 100 million, which at mid-point would represent growth of 39% .
In a ‘drop the mic’ moment during the call, Lisa Su said she expects the PC market to be flat by 2022 as she hinted at lack of concern as she expects AMD to continue to take market share from – sort of, it’s not that close anymore – rival Intel (INTC).
The company expects the Xilinx (XLNX) deal to finally be concluded at some point this calendar year. Su is excited about the expansion of the portfolio that this deal will bring, especially in the areas of artificial intelligence and adaptive computing, which is a huge deal as AMD targets compatriot Sarge Nvidia (NVDA) and the very high end. IT projects such as Facebook’s much-publicized Metaverse (FB).
… Sales of this data center have doubled and this is just one of the many amazing headlines to take away from AMD’s quarter. There are a lot of great things to do.
That action erupted from a $ 114 pivot created by a double bottom pattern in mid-October, after it erupted from a cup with a handle that provided a $ 95 pivot in late July. This first pivot served as a support for the double bottom. This painting is so geeky, it’s cool.
On the cautious side, Relative Strength, Full Stochastic Oscillator and Dairy MACD are all sending “overbought” messages and this could tire the stock a bit after recording profits. This means that AMD might see some commotion here. On the bright side, the stock accomplished all of this without creating an unmet gap. So, a common gravitational force that usually exists in hot stocks does not exist here.
– Target: $ 138
– Pivot: $ 115
– Add: $ 113 (21 day EMA)
– Panic: $ 108
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