Absolute Solid Quarter & FY20

$AMD had a great Q4 2020 and an even better end of the fiscal year for 2020. Revenues increased 45% from 2019 to a whopping $9.76B, which is a record for the company. The gross margins of 45%, increased for the fifth straight year in a row. Due to the rapid rise in revenue while growing margins, AMD’s net income more than doubled from 2019. Operating cash flow was $1.07B up 117% from 2019. I could go on, but you get the picture. What a blowout quarter and year.

AMD Q4 2020 Business Segments

AMD highlights two business segments as a part of their Q4 2020 results, the computing and graphics segment and the enterprise, embedded, and semi-custom segment.

For Q4, the computing and graphics segment drove 60% of the revenue for AMD, primarily driven by the Ryzen processor family. On top of record mobile CPU shipments, the company is ramped up for more than 100 design wins launched in 2020.

In terms of the enterprise, embedded, and semi-custom segment, both cloud and enterprise sales grew quarter over quarter to make up the remainder 40% of the revenue. AMD has processor powered public cloud instances with Alibaba, AWS, and Oracle. All three major players in the cloud game. Adoption of AMD powered servers also grew at Dell, HPE, and Lenovo. Overall, there is no denying that AMD has proven itself and I would expect competitors to be challenged.

Last, but not least- AMD posted record quarterly free cash flow. These are exactly the type of companies you want to be invested in. Solid margins, revenue growth, and a product that has demand.

AMD Gross Margins

The question moving forward is can AMD continue to outperform the competitors? With Apple recently releasing the M1 chip and finding efficiencies by bringing all of the connections together, what is the next move AMD?

For more news on AMD’s results, click here to investigate why this company should be a part of your portfolio.