Subject: Editorial | January 30, 2019 - 09:19 PM | Josh Walrath
Tagged: Vega, ryzen, RX, quarterly earnings, Q4, Intel, EPYC, amd, 7 nm, 2018, 10 nm
Today AMD announced their earnings for Q4 as well as the annual results of 2018. The company had revenue of $6.48 B and a net income of $337 M. This is a pretty significant improvement from 2017 with revenues of $5.25 B and a net loss of $33 M. While Intel’s quarter and annual earnings dwarf what AMD has done, the company has improved its position financially. AMD’s guidance from Q3 earnings indicated that revenue would be down for Q4 as compared to the previous quarter, and results matched those expectations. Q4 revenue came in at $1.42 B with a net income of $38 M. This fell within the range of $1.4 to $1.5 that AMD was expecting. This is compared to the relatively strong Q3 which had revenues of $1.65 B and a net of $102 M.
Annually this is probably the best overall year since 2011 for AMD. The company looks to be running quite lean and has shown that it can achieve profits even in down quarters. It also helps that AMD has been able to get much better terms from GLOBALFOUNDRIES and has successfully amended their wafer agreement so that AMD can pursue manufacturing products at other foundries at 7nm without penalty or royalty payments to GLOBALFOUNDRIES. While GF’s sub 10nm development is now shuttered, the company will still be producing 12/14nm products which will include the upcoming I/O chiplets for use with the next generation Ryzen series as well as EPYC 2. The amended agreement sets purchase targets through 2021, but the agreement itself lasts through 2024.
The primary revenue driver for the company is of course the CPU and GPU markets. Ryzen has continued to provide strong numbers for AMD and has lead to greater numbers shipped as well as higher ASPs. Years of Bulldozer based parts eroded ASPs to nearly unsustainable numbers, but the introduction of Ryzen nearly two years ago has strengthened the foundation of the company and their revenue stream. AMD has reported no inventory issues with either leftover stock of the first generation Ryzen parts or the latest Ryzen 2000 series. There is some fluidity here as EPYC processors utilize the same dies (though more heavily binned) as well as the HEDT Threadripper CPUs that have become popular in workstation applications. Multiple products at a pretty extreme price range utilizing the same basic die is a pretty good way to avoid excess inventory issues, but it is a little scary if demand picks up in one of those areas and there are not enough chips to supply these multiple product lines.
GPUs are not in as good of shape as CPUs. The crypto boom was good for the GPU market, but as soon as that dropped then AMD was left with quite a bit of inventory and a much lower demand. This is partially offset by increases in sales of datacenter GPUs, but AMD looks to be trying to get of as much of this inventory before large scale production of Navi based parts goes into full swing. Current Polaris based parts are competitive for their price points and users can expect a very solid product for the market ranges they represent.
Subject: Processors | January 24, 2016 - 12:19 PM | Sebastian Peak
Tagged: Tigerlake, rumor, report, processor, process node, Intel, Icelake, cpu, Cannonlake, 10 nm
A report from financial website The Motley Fool discusses Intel's plan to introduce three architectures at the 10 nm node, rather than the expected two. This comes after news that Kaby Lake will remain at the present 14 nm, interrupting Intel's 2-year manufacturing tech pace.
(Image credit: wccftech)
"Management has told investors that they are pushing to try to get back to a two-year cadence post-10-nanometer (presumably they mean a two-year transition from 10-nanometer to 7-nanometer), however, from what I have just learned from a source familiar with Intel's plans, the company is working on three, not two, architectures for the 10-nanometer node."
Intel's first 10 nm processor architecture will be known as Cannonlake, with Icelake expected to follow about a year afterward. With Tigerlake expected to be the third architecture build on 10 nm, and not coming until "the second half of 2019", we probably won't see 7 nm from Intel until the second half of 2020 at the earliest.
It appears that the days of two-year, two product process node changes are numbered for Intel, as the report continues:
"If all goes well for the company, then 7-nanometer could be a two-product node, implying a transition to the 5-nanometer technology node by the second half of 2022. However, the source that I spoke to expressed significant doubts that Intel will be able to return to a two-years-per-technology cycle."
(Image credit: The Motley Fool)
It will be interesting to see how players like TSMC, themselves "planning to start mass production of 7-nanometer in the first half of 2018", will fare moving forward as Intel's process development (apparently) slows.