Earlier in the year, chipmaker AMD launched its Ryzen range of processors. In doing so, the company took the fight to market leader Intel with the strong performance of the new silicon. It seems the success of Ryzen has also driven a return to fortunes for AMD.
The company reports improved financials since the launch of the range. The steady upwards trend has put AMD back in profit. In its report, the company says Ryzen 7 drove an uptick in financial performance in Q1 and Q2 of this year.
That small improvement can be attributed to the fact Ryzen was still new. Now the series has been widely available for a long time it has really pushed AMD to profitability for the first time in years.
Yes, it has taken years for the company to make money. That's staggering considering AMD processors are widespread. However, it shows just how dominant Intel has been in the market. We reported previously how Intel was clearly worried by the Ryzen 7 series, and it seems that concern was founded.
Computing and graphics revenue increased 1.74x compared to the same period through 2016. The result was a $70 million operating income, despite Embedded, Semicustom, and Enterprise markets being down.
The most impressive thing about the return to profitability is that it has happened without consoles. AMD is the chip supplier for Xbox One and PlayStation 4.
AMD CEO Lisa Su says the company's datacenter offerings are also gaining traction:
“In a short period, three of the super seven mega datacenter providers have publicly announced plans to deploy EPYC-based products into their hyperscale environments, including Baidu, Microsoft Azure and Tencent. And we have strong engagements with other major cloud providers. In addition, HP Enterprise and Dell are in the process of bringing their first EPYC-based platforms to market in Q4, and we are actively engaged with them to accelerate testing and validation of EPYC-based systems in datacenters across a broad number of large and medium enterprise customers.”
The company says revenue will slip during the fourth quarter, with console sales likely to bring down results. That's because Q4 consoles sales are typically lower than Q3 sales and that seasonality is unlikely to change.