State of the Industry: AMD & Intel Quarterly Reports; Things Look Promising

By Published April 20, 2014 at 7:00 am

It’s no secret that AMD recently has been posting losses. In fact, just two years ago, AMD reported massive losses of about $1 billion in an earnings report. This was the catalyst for layoffs and organizational “restructuring.”  AMD’s (NASDAQ: AMD) large losses were not unique, though -- both Intel and AMD saw their stock price plummet in 4Q12. Rumors of PC death abounded, but the story wasn’t over quite yet.

In 2013, AMD had much lower losses of about $83 million. AMD may have overall losses this quarter (and already predicted them) but their $1.4B revenue for this quarter is a 28% increase over last year. Losses are down 86% from this time last year and the company even beat out analysts’ predictions; much of this can be attributed to the growth of APUs and console deals, though the largest portion of AMD’s profit comes from its GPU division. Intel (NASDAQ: INTC) also recently reported that they had a revenue of $1.9B for 1Q14 that, when compared to the 4Q13 revenue of $2.6B, seems numerically bad, though it still beat out analyst predictions for revenue and is above par for this part of the year.

Net Income per Quarter 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14
AMD ($590mm) $37mm ($157mm) ($473mm) ($146mm) ($74mm) $48mm $89mm ($20mm)
Intel $2.7B $2.8B $2.8B $2.5B $2B $2B $3B $2.6B $1.9B

These results for AMD and Intel are largely due to a stronger desktop market going into 2014 and them both putting more focus into profitable mobile markets. This increase for AMD was also due to increased GPU sales (partly because of cryptocurrency mining) and large PS4/XB1 sales. If AMD is lucky, they’ll be able to keep up this trend and become more competitive going forward. AMD CEO Rory Read seems quite optimistic, saying: “We are well positioned to continue to grow profitably as we diversify our business and enable our customers to drive change and win.”

In similar news, GlobalFoundries and Samsung recently teamed-up and expect to be capable of 14nm FinFET chips by the end of this year. I would expect 14nm FinFET to be available to consumers within the next 12-18 months. If this works well, AMD could go from using 32nm on their CPUs to 14nm FinFET dice. These Q1 reports from both Intel and AMD show promise in the market, despite predictions made over the past year of a downturn.

-Michael “The Bear” Kerns.

Last modified on April 24, 2014 at 7:00 am
Michael Kerns

Michael Kerns first found us when GN's Editor-in-Chief was tirelessly answering questions on reddit pertaining to a new product launch, likely after the Editor had stayed up all night writing the news post. Michael offered a tired Editor reprieve, taking over the role of questions-answerer-extraordinaire when it was most needed. These days, Michael can be found pulling his mechanical keyboard collection apart and building Frankenstein's Monster-like monsters of keyboards. Michael wrote the vast majority of our mechanical keyboard dictionary and is an expert in keyboards.

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