Reaping the benefits of its Zen-based architecture as well as console deals with both Sony and Microsoft, AMD has reported yet another record quarter with revenue of $3.2 billion, an increase of 16 percent compared to the previous quarter and up by 53 percent compared to the same quarter last year.
Interestingly, gross margin was reported at 45 percent, a single point increase compared to the previous quarter and flat compared to the same quarter last year.
More importantly, gross profit as well as operating income, operating margin, and net income were all up, marking a strong increase in profitability. AMD reported an operating income of $570 million, up by 64 percent compared to the last year and up by 27 percent compared to the prrevious quarter.
AMD's Q4 2020 net income was reported at $1781 million, which is an impressive increase of 948 percent compared to the last year and up by 357 percent compared to the previous quarter. Earnings per share were reported at $1.45, which is also an increase of 867 percent and 353 percent.
AMD had a great year
When it comes to financial results for the full year, AMD reported a revenue of $9.8 billion, up by 45 percent compared to the last year, with gross marging of 45 percent, a two point increase compared to the last year. Operating income was reported at $1368 million, up by 117 percent compared to the last year, and net income was reported at $2490 million, up by 630 percent. Earnings per share were up by 587 percent and reported at $2.06.
With an expected slow Q1 and Q2 2020, which were still better then last year, AMD had a significant growth in last two quarters of the 2020, which resulted in a significant revenue growth for this year.
AMD's strong Ryzen sales resulted in a revenue of $1.96 billion from its Computing and Graphics group, with operating income of $420 million. The Enterprise, Embedded and Semi-Custom segment brought a healthy $1.28 billion, a big increase compared to the same quarter last year.
AMD predicts a good Q1 2021
AMD expects a good Q1 2021 financial outlook, and despite the fact that Q1 is usually the slowest financial quarter, AMD expects a revenue of $3.2 billion, which is similar to the strong Q4 2020. Gross margin is expected at 46 percent, a one percent increase.
AMD's Zen 3-based Cezanne APUs have started shipping in laptops, and show promising results, and we expect strong sales from its Ryzen 5000 series desktop CPUs as well, so the company should do well in Q1 2021. Its server EPYC Milan CPUs should also come in late Q1 2021 and have a small impact on the financial side, as well.
AMD is definitely doing well and if wasn't for problems with supply, the company could do much better so hopefully, it will be over soon and we'll see a healthy supply of products on the market.