AMD predicts double-digit revenue growth in 2018

Chip designer ramps up GPU production

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AMD predicts double-digit revenue growth in 2018 Su says GPU supply in the channel is low, but the company is ramping up GPU production.
By  Manda Banda Published  February 7, 2018

AMD capped off a turnaround year, in every sense of the word, as it raked in a $204m in profit. That's a stark improvement over its $372m loss in 2016.

Dr. Lisa Su, CEO AMD, said in her earning call that the company's commitment to its continuing work on the Spectre mitigations demonstrates its long term pledge to be a force to be reckoned in the processor market.

Su said the company doesn't expect any undue financial impacts from those efforts and will bake in silicon-based mitigations for Spectre in its forthcoming Zen 2 design. This is similar to Intel's announcement that it would have silicon-based mitigations out this year.

Su also noted that GPU supply in the channel is low, which isn't a surprise to anyone who has shopped for a graphics card lately, but the company is ramping up GPU production.

She pointed that the company has plenty of silicon supply from its foundry partners, meaning GPUs aren't the limiting factor - instead, it's the ongoing GDDR5 and HBM shortages that are primarily to blame. "We expect graphics demand to be strong throughout the first half of 2018, with blockchain (mining) continuing to play a big role," she added.

Su noted that although it's hard to quantify accurately, crypto mining contributed roughly 10% (or possibly more) of the company's annual revenue and a third of the company's $140m in sequential growth.

AMD's $1.48bn revenue in the fourth quarter of 2017 was up 24% year on year but down 10% quarter-over-quarter.

The company said that was expected due to the normal seasonal downturn in its semi-custom business. Overall, the chip maker increased its 2017 revenue by more than a billion dollars compared to 2016.

AMD had a great year that marked its return to growth and profitability, as the vendor also made a strong projection of $1.5bn in revenue for Q1 2018. Su further predicted double-digit revenue growth in 2018. "The increased revenue will help the company to further invest in R&D as it continues to improve upon its existing architectures," she said.

AMD said its OEM partners will roll out over 60 OEM desktop platforms this year, which will expand the company's reach into a much larger market segment. AMD also has a string of OEM server rollouts and a strong roadmap for the remainder of the year.

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