Why AMD Makes Less Sales and Profits in Q2 FY 2019

In the second quarter of 2019, the numbers for Advanced Micro Devices AMD went down a bit, primarily due to less sold graphics cards after the downturn in the mining hype. Over the next few months, however, the Ryzen 3000, the Radeon RX 5000 and the Epyc 7002 will ensure higher sales.

AMD has announced its second quarter 2019 results, down from $ 1.756 billion in the prior year to $ 1.531 billion, from $ 116 million to $ 35 million. On the other hand, margins increased slightly and the average selling price per processor was also higher than in the previous year, because the Ryzen 3000 for desktops and the Epyc 7002 for servers are more expensive than the predecessor models, which are now cheaply available.

The Computing and Graphics division, which includes CPUs and graphics cards, turned over just $ 940 million instead of $ 1.086 billion, with earnings down from $ 117 million to $ 22 million. According to AMD, this is primarily due to less sold graphics cards after the downturn in the crypto-mining boom, the new Radeon RX 5700 (XT) and the equally new Ryzen 3000 have little effect despite good sales on the numbers so far.

Although the drop in sales for Playstation and Xbox is noticeable in the segment for server CPUs and console chips called Enterprise, Embedded and Semi-Custom, the Epyc 7002 is already showing itself: sales went from $ 670 million to $ 591 million but the profit rose slightly from $ 69 million to $ 89 million.

According to AMD leading semiconductor company, the partners would very well accept the new server CPUs : Compared to the Epyc 7000, the first generation, more than twice the number of platforms in development and the number of customers in the cloud and enterprise sector is four times as high as before. The Epyc 7002, with up to 64 cores instead of 32 cores, called Rome internally, will be officially launched on August 7, 2019. For the third quarter of 2019, AMD expects sales of $ 1.8 billion, 9 percent more than last year.

However AMD X570 motherboards with PCIe 4.0 is the latest innovative that will give gamers more flexibility and more control than ever and hence boost to the AMD sale.