AMD achieved its highest quarterly revenue ever in the second quarter of 2022, reaching 6.6 billion US dollars, up 70% year on year. Growth is driven by the company's data center and embedded divisions. Due to the amortization of assets acquired from Xilinx, the gross profit margin decreased by 140 basis points to 48% year on year. AMD completed its US $1.9 billion acquisition of Pensando Systems in this quarter to complement its data center portfolio with high-performance data processing units (DPUs) and software stacks.

AMD achieved its highest quarterly revenue ever in the second quarter of 2022, reaching 6.6 billion US dollars, up 70% year on year. Growth is driven by the company's data center and embedded divisions. Due to the amortization of assets acquired from Xilinx, the gross profit margin decreased by 140 basis points to 48% year on year. AMD completed its US $1.9 billion acquisition of Pensando Systems in this quarter to complement its data center portfolio with high-performance data processing units (DPUs) and software stacks.

Segment reporting

The business income of the data center was USD 1.5 billion, up 83% year on year, due to the strong support of EPYC (Xiaolong) processors and the lack of competitive products.

The customer segment's revenue was $2.2 billion, up 25% year on year, due to higher ASP focusing on high-end notebook product portfolio and processors.

The revenue of the game division was $1.7 billion, an increase of 32% year on year driven by semi custom chips used for game console sales. Due to consumer inflation pressure, the income of game graphics declined.

Due to the embedded revenue of Xilinx, the revenue of the embedded department was $1.3 billion, up 2228% year on year.

Data Center

The revenue growth comes from the mainstream adoption of EPYC processors by cloud service providers and enterprises.

The company also launched the first cloud based software as a service solution for the chip design of Windows Azure and Synopsys by deploying Milan-X and 3D stacked microchips.

appearance

The company is committed to launching the next generation chipset roadmap of Genoa in the third quarter of this year, which will be manufactured using TSMC 5nm.

Customer base

Focusing on the high-end notebook processor product portfolio, the company achieved continuous growth for the ninth consecutive quarter.

Consumer OEMs have launched about 300 designs, and about 50 products have been released on Ryzen based enterprise class systems.

appearance

The company is committed to its next generation chipset roadmap, which is to launch 5nm Ryzen 7000 desktop processor and AM5 platform in the third quarter.

Game section

Driven by the growth of semi customized console, the company managed to achieve the growth of the sector, which is facing the headwind of inflation.

appearance

The company plans to launch a high-end RDNA game GPU with 5nm technology in the third quarter, aiming to improve the performance per watt by 50%.

Embedded segment

Facts have proved that the acquisition of Xilinx is a star in this field, because FPGA and custom computing are still in demand. The mission critical nature of the product helps navigate against economic headwinds.

Industry: Due to the higher demand of multiple tier 1 system suppliers in the wired field, communication has become the leader, while the demand in the wireless field has been driven by the repeated growth of ORAN deployment in North America.

Embedded CPU revenue grew significantly in the quarter due to increased vehicle sales and new network and storage designs winning products.