Samsung has scratched the 7nm itch

Subject: General Tech | October 18, 2018 - 01:11 PM |
Tagged: Samsung, 7nm

A few short years ago 7nm was a holy grail, something to be sought for but unlikely to be successful.  The richest knight in the kingdom is still seeking their goal, while the squires have already got one.  AMD is doing well with their process but it is Sir Samsung whom has met with the most success.  Their trusty EUV proved up to the task and they are no longer seeking a 7nm process and have moved onto sharing the benefits of their quest with the world.  The new chips will be Low Power Plus, and find their way into smartphones, and cell providers, IoT devices and many other applications in the small endian market.  The Inquirer posted a look at how they got there, as well as some definitions if this is all Gallic to you. 

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"Normally argon fluoride immersion tech is used for chip lithography. But Samsung is touting the advantages of EUV in cutting down the number of masks needed to allow for the stencilling of transistors on silicon in a certain pattern, and thus cuts down on the time and costs of producing chips."

Here is some more Tech News from around the web:

Tech Talk

 

Source: The Inquirer

ARM Unveils "Neoverse" Infrastructure

Subject: General Tech | October 16, 2018 - 01:44 PM |
Tagged: UMC, TSMC, Samsung, Neoverse, cosmos, cortex, arm, Ares, A76, 7nm, 7+nm, 5nm

This morning ARM is announcing their new design and technology push called "ARM Neoverse". Neoverse is aimed at providing scalable solutions utilizing ARM technology from the edge to the core datacenter. ARM obviously is well known for the end user solutions that we see in phones, tablets, and now laptops. What most do not realize is that ARM has a significant reach in much of the infrastructure that powers the entire user experience. ARM currently holds around a 30% marketshare for powering high end routers and switches used at the enterprise level. The type of equipment we are talking about here are not the home routers or generic switches, but rather the heavy lifting units that literally power the internet after the requests get out of users houses or from their mobile devices.
 
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The Neoverse roadmap consists of four platforms stretching from now til 2021. Each platform is expected to receive around a 30% increase in overall performance due to a combination of architectural changes as well as process technology improvements. The current architecture is codenamed "Cosmos" and it is based on current 16nm parts. This is followed by the "Ares" platform which will utilize the latest Cortex A76 designs and 7nm process. In 2020 this will transition to the "Zeus" platform which will leverage the latest improvements in 7nm+ process technologies. Finally they expect to release the "Poseidon" platform in 2021 which will be based on a cutting edge 5nm process.
 
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ARM has been slowly building up their technology base through the past several decades to include more and more functionality and features across their entire portfolio. Of great interest is how seriously ARM considers security. The latest designs include some of the most robust security measures integrated on chips. From TrustZone to CryptoIsland, ARM has a very well thought out and implemented security suite that is absolutely necessary for the next generation of connected devices. This again extends from handheld devices to the depths of the data center. We are surrounded by stories of compromised devices and software, so having the extensive security measures designed from the ground up available to partners helps to cement ARM's place in trusted computing.
 
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The amount of IP available to partners is impressive. ARM not only offers the core technologies of CPUs and GPUs, but also the latest machine learning units and encryption accelerators. The fabric that holds it all together is also flexible and scalable from mobile solutions to 100G+ ethernet. This also includes memory controllers that can scale up to 8 units delivering TBs/sec of bandwidth.
 
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It really is impressive to see how far ARM has come in the past decade since the launch of the first iPhone. What was once considered a small, but still important CPU design firm is now the power behind billions of shipping products that power the mobile experience and beyond. ARM has taken the momentum from its first big successes and is now a major force for change that stretches far beyond those initial mobile and low power products. The Neoverse only adds to this. ARM has already found success in powering much of the infrastructure of our modern day networks, but this is looking to take things to another level. Partners will have access to cutting edge IP and solutions to quickly bring specialized and high performing products to market in very short periods of time.
 
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Going forward we will start hearing more about these Neoverse implementations starting with current Cosmos products and spreading quickly throughout the next year with Ares. ARM has so far continued to execute on their roadmaps and provide new and compelling products to their partners on a yearly basis. This does not look to change anytime soon.
Source: ARM

Lucky number 7 for AMD

Subject: General Tech | October 2, 2018 - 01:24 PM |
Tagged: zen 3, rumours, amd, 7nm

There is something interesting going on at AMD according to the rumours coming out of The Inquirer today.  It seems that they will be moving from their current 12nm process node directly to a 7nm node for the next generation of Zen processors, both consumer and enterprise.  AMD has confirmed the next EPYCs will be on that node, but the news that Ryzen 3 will be was previously unknown.  The chip itself is expected to have a base clock of 4GHz with 4.5.GHz top boost, eight cores with 16 threads and performance close to Coffee Lake S.  The performance comparison is not all that useful without more information about what scenarios this would refer to, perhaps single thread performance which would be a nice jump.

As always, grab your salt shaker before heading over to follow the links back to the source as we will not know much more until next year.

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"THINGS ARE ALL ZEN at AMD but probably not in the way you'd think, as leaked information has spilled the beans on what shape the chip maker's second-gen Zen architecture could look like."

Here is some more Tech News from around the web:

Tech Talk

 

Source: The Inquirer

Apple Announces iPhone XS, XS Max, and XR Smartphones with 7nm A12 Bionic Processor

Subject: Mobile | September 12, 2018 - 04:24 PM |
Tagged: SoC, smartphone, mobile, iPhone XS Max, iPhone XS, iPhone XR, iphone, ios, apple, A12 Bionic, 7nm

Apple’s event today included expected (and previously leaked) iPhone announcements for the faster “S” variant of the iPhone X, as well as a new, larger iPhone XS Max, and finally the new, lower-cost iPhone XR. All three phones include Apple’s latest mobile processor, the A12 Bionic, as well as new cameras and other improvements.

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The design is unchanged, but the 6.5-inch form-factor is new (image via Apple)

Beginning with the primary announcement, the new 5.8-inch and 6.5-inch iPhone XS and XS Max phones both feature Super Retina OLED displays which Apple says now offer wider dynamic range, and the glass protecting them is “the most durable glass ever” in a smartphone. The new XS Max offers the same 458 ppi density as the iPhone XS with its 2688x1242 resolution (the iPhone XS has the same 2436x1125 resolution as the iPhone X), and both phones are now IP68 water and dust resistant and dual-SIM capable (using eSIM).

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Apple says the A12 Bionic chip will be the first to market at 7nm (Hauwei's 7nm Kirin 980 was previously announced but not shipping until mid-October), and the move to this smaller process should allow for lower power consumption and increased performance.

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The A12 Bionic has a 6-core CPU design as we saw with the A11, and uses the same Apple-designed Fusion architecture. Apple says its two performance cores are “up to 15% faster and 40% lower power”, and the four efficiency cores offer “up to 50% lower power” with no stated increase in performance.  Other than stating that it is a proprietary design little was revealed about the GPU other than it is now a 4-core design, which Apple says is “50% faster” than before.

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The camera system on the new phones offers a new “advanced bokeh” feature which allows for f-stop adjustment after the photo has been taken, and during the presentation this feature appears to work in a very realistic way comparable to dedicated lenses with a DSLR. Other features include improved speakers, stereo audio recording with video, and "Gigabit-class" LTE.

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The iPhone XR is an LCD variant with lower cost (image via Apple)

The “one more thing” at the even was a new lower-cost iPhone based on the iPhone X design, but with an LCD display that Apple is calling “Liquid Retina”. This 6.1-inch device has a display resolution of 1792x828 (326 ppi), uses the new A12 chip, and while it is a single-camera phone like the iPhone 8 it uses the latest wide-angle camera from its “S” model siblings.

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The display also features “120 Hz touch-sensing” - which may be independent of display refresh, but that is unknown at this point - a wide color gamut, and is a True Tone display like the iPhone X. The phone drops 3D Touch, using instead what appears to be a long-press detection with haptic feedback. The phone does not offer the "Gigabit-class LTE" of the XS/XS Max, is IP67 rather than IP68 water and dust resistant, but does retain the new “most durable glass” from the "S" models.

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Pricing for the new lineup is as follows:

  • iPhone XS 64GB - $999
  • iPhone XS 256GB - $1149
  • iPhone XS 512GB - $1349
  • iPhone XS Max 64GB - $1099
  • iPhone XS Max 256GB - $1249
  • iPhone XS Max 512GB - $1449
  • iPhone XR 64GB - $749
  • iPhone XR 128GB - $799
  • iPhone XR 256GB - $899

The new iPhones XS and XS Max will be available next week, with a September 21 launch day (pre-ordering begins on Friday, September 14). The iPhone XR launches on October 26 (pre-order October 19).

Source: Apple

Intel Releases Q2 2018 Results

Subject: Editorial | July 29, 2018 - 07:49 PM |
Tagged: TSMC, Skylake, ryzen, Results, Q2, Intel, amd, 7nm, 2018, 10nm

The day after AMD announced their quarterly results, Intel followed up with a very impressive quarter of their own. Intel has reported another record quarter with $17B in revenue and $5B net. The business is extremely healthy and they continue to provide a lot of value and returns to shareholders. Typically Q2 is the second slowest quarter of the year, but Intel was able to improve their revenues by $900M over Q1. In certain quarters a 5% increase may not be all that large, but it is a significant jump from Q1 to Q2.

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Intel reported that nearly all areas of the company have grown. Client Computing Group showed a 6% increase year over year, which is good news for the industry in general as many have (often) predicted that the PC market is in decline. This is also in the face of renewed competition from AMD and their Zen architecture based products. AMD also has grown steadily over the past year in terms of shipping products, so that further reinforces the impression that the PC market continues to grow steadily.

The data-centric business is steadily closing the gap between it and the PC centric group. CCG posted $8.7B in revenues while the data groups combined came in at around $8.1B. The Data Center Group was $5.5B of that result. It is up a very impressive 27% yoy. Intel has what seems to be a juggernaut in the data center with their Xeon products, and that growth is quite likely to continue growing as the need for data processing in our information rich world seemingly knows no bounds.

Intel raised their outlook for the year by nearly $2B to an impressive $69B in revenues. This is easily 10x that of their primary competitor. 2018 has certainly been a very profitable year for Intel and it looks to continue that trend throughout the last two quarters. Intel continues to improve upon their 14nm processes and it has allowed them to achieve a 61.4% margin. Compare this to AMD’s 37% margin and we can understand why 2018 is looking so good. Intel has lost a little bit on margin as compared to last year, but the amount of products being shipped is simply stunning as compared to its rival.

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There were some expecting AMD to be taking up more of Intel’s marketshare, but that has not been the case. If anything, while AMD’s bottom line has improved, Intel appears to have actually taken more share in an expanding market. Unlike 2003 when AMD had the superior product with the Athlon 64 over Intel’s Pentium 4, the current Ryzen CPUs are “merely” competitive. While the performance and efficiency jump for AMD’s architecture is impressive considering the previous “Bulldozer” based generation, they now offer comparable performance with a price/core count advantage over Intel. This has not been enough to convince people and organizations to change en masse to AMD’s offerings. In 2003 a 2 GHz Athlon 64 was outperforming a 3.2 GHz Pentium 4. AMD was able to continue outperforming Intel even though they were at a serious process disadvantage.

While Q3 and Q4 look to continue Intel’s string of record quarters, things do not look as rosy when we get into 2019. Intel has had an endless stream of problems getting their advanced 10nm process up and running. It was originally expected to replace Intel’s 14nm process around two years after that particular process had been introduced. Then it turned into three years. Now we are five years into Intel using a 14nm variant for their latest generation of products. Intel used to have a 18 to 24 month lead over the competition when it comes to process technology, but now that advantage has all but evaporated. In theory Intel’s 10nm process is superior to what TSMC is offering with its 7nm in terms of die size, power, and transistor performance. However, those advantages do not amount to anything if it is unworkable. Intel has been very tight lipped with analysts and shareholders about the exact issues it is facing with the direction they set on with 10nm. It seems the combination of materials, tolerances, and self-aligned quad patterning is problematic enough that Intel cannot get consistent results with yields and bins.

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In the conference call Intel said that 10nm parts will be available on shelves by the holiday season of 2019. This means that Intel expects to hit high volume manufacturing near the end of 1H 2019. Intel further stated that data center parts will be shipping shortly after desktop and mobile, so most expect the first products to hit in Q1 2020. The problem that Intel will is that TSMC will be starting volume manufacturing of their 7nm parts shortly, if not already. AMD has 7nm EPYC sampling to partners and has spoken of a 1H introduction of those parts in volume. AMD will be introducing the Zen 2 architecture in that time on both server and desktop, and they are hinting at a significant IPC uplift with these parts.

If Intel is able to hit its 10nm goal in late 2019, AMD will have around a nine month window where they theoretically could have a superior product than Intel. AMD will surely come ahead from a density standpoint. If we combine this with the potential IPC improvement and a small uplift in transistor performance, then Zen 2 products should be able to outclass anything Intel comes out with. If AMD is really on the ball, then their EPYC processors could have a year to themselves without a comparable product from Intel.

This type of competition does not mean that Intel will simply shrivel up and die, but it is causing investors to rethink holding onto the stock after the pretty impressive run up over the past several years. Intel still has more fab space available to it than AMD could dream of at this point. There will be a lot of competition for 7nm wafer starts that will be shared by AMD, NVIDIA, Qualcomm, and Apple (not to mention dozens of other fab-less semi firms). AMD could very well sell as many chips as it can make, but it simply cannot address the needs of all of the markets that it is competing in. If GLOBALFOUNDRIES 7nm process is similar to TSMC’s, then we will see AMD be able to supply far greater amounts of product to the market, but GF is at least six months behind TSMC when it comes to ramping up their next generation process line. I would not expect GF based CPUs to hit anytime before Q2 2019, if not towards the end of that quarter.

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Does this mean that Intel expects nothing except doom and gloom throughout 2019 and possibly into 2020? I do not think so. Intel will retain its market dominance, but it looks to be experiencing a situation that is a combination of a competitor hitting its stride as well as some bad luck/poor planning with manufacturing. This should open the door for AMD to make significant advances in marketshare and allow the company to make some serious money by improving their ASPs as well as shipping more parts.

2018 will undoubtedly be a record year for Intel. It is 2019 that is giving pause to investors and shareholders. If Intel can clean up its 10nm process in a timely manner they will close the door on any advances from AMD. If the company continues to experience issues with 10nm and never in fact gets it out the door, then it will be a long couple of years til Intel gets out their 7nm process. The rumor is that engineers have been pulled off of 7nm to fix 10nm. If this is the case, then I hesitate to even think when we will be seeing that upcoming node coming to fruition.

Source: Intel

AMD Announces Q2 2018 Results

Subject: Editorial | July 25, 2018 - 09:47 PM |
Tagged: Vega, ryzen, Q2 2018, Polaris, Intel, EPYC, amd, 7nm, 12nm

Today AMD has released their Q2 results for 2018 and they have fallen in line with previous estimates. The company reported revenue of $1.76B, up $110M from last quarter’s $1.65B. Their net income is $116M which is again up significantly from last quarter’s $81M. These results dwarf Q2 2017’s $1.15B in revenue and a loss of $42M. AMD has shown steady and solid growth since the release of the Ryzen processors and their continuing evolution of the RX series of graphics cards.

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The computing group which includes CPUs and GPUs showed a small drop in revenue due to multiple factors. CPU ASPs are steadily dropping for AMD since the original introduction of the Ryzen processors. The top end R7 1800X was introduced at $499 and has slowly dropped in price as the year wore on. This year AMD released the successor to the 1800X in the R7 2700X, but it was released at a $329 price point. We can see that the pricing mix of these CPUs is not as rich as they were on Ryzen’s initial release. The play here seems to be AMD improving efficiency of production as well as a willingness to sacrifice ASPs to gain any kind of marketshare.

GPUs have suffered as well due to the drop off in mining based purchases due to cryptocurrency dropping in value as well as the continued introduction of specialized ASICs performing better in those particular workloads. AMD claims a fairly palatable drop of only around 4% in sales due to the decrease in mining demand. It is likely that partners are feeling more of a pinch in this instance as the selling prices of these cards are finally reaching introductory MSRP levels as well as seeing reasonable availability. We do not know the specifics of AMD’s GPU sales to partners, but it seems like that price has been stable since introduction with the partners and resellers profiting to a greater degree than AMD.

The bright spot for this quarter was that of Enterprise and Semi-Custom. AMD switched around accounting on how it handles Semi-Custom so that accounted for some of the positive gains this quarter saw. AMD also started its collaboration with the Chinese for their own version of a Zen CPU. AMD continues to provide console makers with SoCs in two of the three major product lines out there. AMD is also likely currently contracted by both Sony and Microsoft for the next generation of consoles which will be released in the next two years, though none of the parties involved in such speculation has verified that information. I have a hard time considering that both Sony and Microsoft would abandon what has been a very beneficial partnership to create cutting edge products for their marketplace.

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The Enterprise group has also seen sales increase on the EPYC processors. EPYC was released last year, but it was not until this year that actual sales occured. While AMD did not provide specific numbers or guidance here, reading between the lines it looks as if EPYC is starting to gain traction and is shipping in more significant numbers. AMD was very careful in talking about this, as EPYC still has a long ways to go before it can claim to have gained significant marketshare. Lisa Su mentioned earlier that the real ramp for EPYC should occur in 2H 2018. This makes quite a bit of sense as the hardware and software environment for enterprise level products is tremendously different from when AMD was last competitive there. Validation of parts and platforms takes more time, and there are more complex software components involved that have to be updated to work effectively and efficiently on the new Zen architecture and EPYC chips. In the year since EPYC was launched a lot of work has been going on in the background by AMD, their hardware partners, and the software vendors to make sure that when EPYC hits volume production that most of the kinks will be worked out and it is truly enterprise production ready. This isn’t wishful thinking or excuse making. This is simply how a modern enterprise platform evolves and why product cycles are elongated as compared to what we see on the desktop and mobile spaces.

Guidance for next quarter will be disappointing for some investors and readers. AMD claims it will be flat between Q2 and Q3. This is not entirely surprising. Gaining desktop CPU marketshare has not been a slam dunk for AMD with Ryzen. The product stack has made it competitive with Intel and its offerings, and has in fact provided excellent value in terms of IPC and core count. Ryzen is not an Athlon 64. Ryzen was merely competitive with what Intel currently offers as compared to Athlon 64, which was head and shoulders more advanced than what Intel offered at the time with the Pentium 4. AMD is finding advances in marketshare in both desktop and mobile to be slow, but steady. Each quarter since Ryzen was released and the mobile parts being introduced earlier this year, the results have been trending in a positive direction even though ASPs on desktop parts have dropped (though mobile ASPs have increased).

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AMD obviously does not expect big gains this next quarter, and are in fact a little behind the ball when it comes to graphics. NVIDIA is poised to release a new generation of products within the next few months addressing the upper midrange and high end offerings that will erode AMD’s effectiveness with their Vega parts. So while EPYC products will increase in sales, AMD looks like it will be shipping fewer GPUs, at least in the high end. We probably will see Polaris based products have price drops applied to them to keep the meat of the market satisfied with AMD product, but do not expect next generation desktop graphics from AMD until 2019.

This was a productive and solid quarter for AMD. It is hard to argue against that. Their financial house is in far greater order and a solid revenue stream heading towards the company. They are keeping costs under control while aggressively pursuing the markets they have a strong history in. They have continued to leverage their IP with the Semi-Custom group and that provides a steady income from both historical partners and new ones. AMD is not seeing a breakaway quarter or year, but they are building a much more solid foundation and executing on their primary markets while competing effectively with Intel. This is certainly not 2003/2004, but it is a new chapter for AMD as they continue to provide new and interesting products to a market that continues to expand.

 

Source: AMD

Podcast #502 - Computex coverage and more!

Subject: General Tech | June 7, 2018 - 11:50 AM |
Tagged: xTend, xps, video, Vega, Threadripper, Snapdragon 850, seasonic, scmd, ROG, qualcomm, podcast, Optane, nvidia, microsoft, logitech, Killer Wireless, Isaac, InWin, Intel, i7-8086k, git, fortnite, EPYC, dell, crystal, corsair, CaseKing, asus, aorus, amd, 7nm

PC Perspective Podcast #502 - 06/07/18

Join us this week for discussion on Computex and more!

You can subscribe to us through iTunes and you can still access it directly through the RSS page HERE.

The URL for the podcast is: http://pcper.com/podcast - Share with your friends!

Hosts: Ryan Shrout, Jeremy Hellstrom, Josh Walrath, Ken Addison

Peanut Gallery: Alex Lustenberg

Program length: 1:45:27

Podcast topics of discussion:
  1. Week in Review:
  2. News items of interest:
    1. 1:00:40 ASUS all the things
  3. Picks of the Week:
  4. Closing/outro
 
Source:

Computex 2018: AMD Shows off 7nm Vega Graphics

Subject: Graphics Cards | June 5, 2018 - 11:58 PM |
Tagged: Vega, machine learning, instinct, HBM2, gpu, computex 2018, computex, amd, 7nm

AMD showed off its first 7nm GPU in the form of the expected AMD Radeon Instinct RX Vega graphics product and RX Vega GPU with 32GB of HBM2 memory. The new GPU uses the Vega architecture along with the open source ecosystem built by AMD to enable both graphics and GPGPU workloads. AMD demonstrated using the 7nm RX Vega GPU for ray tracing in a cool demo that showed realistic reflections and shadows being rendered on a per pixel basis in a model. Granted, we are still a long way away from seeing that kind of detail in real time gaming, but is still cool to see glimpses of that ray traced future.

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According to AMD, the 32GB of HBM2 memory will greatly benefit creators and enterprise clients that need to work with large datasets and be able to quickly make changes and updates to models before doing a final render. The larger memory buffer will also help in HPC applications with more big data databases being able to be kept close to the GPU for processing using the wide HBM2 memory bus. Further, HBM2 has physical size and energy efficiency benefits which will pique the interest of datacenters focused on maximizing TCO numbers.

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Dr. Lisa Su came on state towards the end of the 7nm Vega demonstration to show off the GPU in person, and you can see that it is rather tiny for the compute power it provides! It is shorter than the two stacks of HBM2 dies on either side, for example.

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Of course AMD did not disclose all the nitty-gritty specifications of the new machine learning graphics card that enthusiasts want to know. We will have to wait a bit longer for that information unfortunately!

As for other 7nm offerings? As Ryan talked about during CES in January, 2018 will primarily be the year for the machine learning-focused Radeon Instinct RX Vega 7nm GPU, with other consumer-focused GPUs using the smaller process node likely coming out in 2019. Whether those 7nm GPUs in 2019 will be a refreshed Vega or the new Navi is still up for debate, however AMD's graphics roadmap certainly doesn't rule out Navi as a possibility. In any case, AMD did state during the livestream that it intends to release a new GPU every year with the GPUs alternating between new architecture and new process node.

What are your thoughts on AMD's graphics roadmap and its first 7nm Vega GPU?

Source: AMD
Author:
Subject: Editorial
Manufacturer: Intel

2018: A banner year

Intel has a long history of generating tremendous amounts of revenue and income. This latest quarter is no exception. Intel has announced record Q1 revenues for this year and they look to continue that trend throughout 2018. AMD released their very positive results yesterday, but their finances are dwarfed by what Intel has brought to market. The company had revenue of $16.1 billion with a net income of $4.5 billion. Compare this to AMD’s $1.625B revenue and $81M net income we see that the massive gulf between these two companies will not be bridged anytime soon with either Intel falling or AMD gaining.

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Intel has put its money to good use with a wide variety of products that stretch between the PC market and datacenters. While their low power and ultra-mobile strategies have been scaled back and cancelled in some cases, their core markets are unaffected and they continue to make money hand over fist. The company has always been fundamentally sound in terms of finances and they do not typically spend money recklessly. They continue to feature market leading IPC with their product lines and can address multiple markets with the x86 products they have.

Click here to continue reading about Intel's Q1 results!

AMD Announces Q1 2018 Results

Subject: Processors | April 25, 2018 - 09:45 PM |
Tagged: Zen+, Vega, TSMC, ryzen, Results, Q1 2018, Polaris, GLOBALFOUNDRIES, financials, amd, 7nm, 12nm

Today AMD announced their latest financial results for Q1 2018. We expected it to be a good quarter with their guidance earlier this year, but I doubt many thought it would be as strong as it turned out to be. AMD posted revenue of $1.65 billion with a net income of $81 million. This is up from the expected $1.57 billion that analysts expected from what is typically a slow quarter. This is up 40% from Q1 2017 and its $1.18 billion and up 23% from Q4 2017.

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There are multiple reasons behind this revenue growth. The compute and graphics segment lead the way with $1.12B of revenue. The entire year of 2017 AMD had released parts seemingly nonstop since March and the introduction of Ryzen. Q1 continued this trend with the release of the first Ryzen APUs with Vega Graphics introducing the 2000 series. AMD also ramped up production of the newly released Zen+ Ryzen chips and started shipping those out to retailers and partners alike. Initial mobile Ryzen parts were also introduced and shipped with SKUs being also shipped to partners who have yet to announce and release products based on these chips. Finally the strength of the Radeon graphics chips in both gaming and blockchain applications allowed them a tremendous amount of sellthrough throughout 2017 and into 2018. AMD estimates that 10% of the quarter was due to blockchain demand.

Enterprise, Embedded, and Semi-Custom had a revenue of $532 million, which is lower than most analysts expected. Semi-Custom in particular has seen a decline over the past few quarters with the release and saturation of the market of the latest console platforms utilizing AMD designed chips. It appears as though much of the contract is front loaded in terms of revenue with royalties tapering off over time as sales decrease. AMD did have some significant wins, namely providing Intel with Vega based GPUs to be integrated with Intel’s Kaby Lake-G based units. These declines were offset by the shipment of EPYC based processors that are slowly ramping and being shipped to partners to be integrated into server platforms later this year. We have seen a handful of wins from companies like Dell EMC, but AMD is still slowly re-entering the market that they were forced to abandon with their previous, outdated Opteron products. AMD expects to reach mid-single digit marketshare during 2019, but for now they are just getting off the ground with this platform.

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The company is not standing still or resting on their laurels after the successful and heralded launch of the latest Ryzen 2000 series chips based on the Zen+ architecture. It is aggressively ramping their mobile chips featuring the Zen/Vega combination and have some 25 product wins being released throughout late spring and summer. Overall partners have some 60 products either shipping or will ship later this year featuring Ryzen based CPUs.

There is some fear that AMD will see its GPU sales throughput be impacted by the recent drop of cryptocurrency value. Several years back with the Bitcoin crash we saw a tremendous amount of secondhand product being sold and GPU revenues for the company tanked. AMD is a bit more optimistic about the upcoming quarter as they expect the current cryptocurrency/blockchain market is much more robust and people will be holding onto these cards to mine other products/workloads rather than drop them on eBay. My thought here is that we will see a rise in cards available on the secondary/used market, but quite a bit might be offset by latent gaming demand that has been held back due the outrageous prices of GPUs over the past year. People that have been waiting for prices to get back to MSRP or below will then buy. This could be further enhanced if memory prices start to drop, providing more affordable DDR4 and flash for SSDs.

The company is also forging ahead with advanced process technology. They have recently received silicon back from TSMC’s 7nm process and it looks to be a Vega based product. The rumor surrounding this is that it will be more of a compute platform initially rather than gaming oriented. Later this year AMD expects to receive new EPYC silicon, but it looks as though this will be from GLOBALFOUNDRIES 7nm process. AMD wants to be flexible in terms of manufacturing, but they have a long history with GLOBALFOUNDRIES when it comes to CPU production. The two companies work closely together to make sure the process and CPU design match up as cleanly as possible to allow products such as Zen to reach market successfully. The GPU arm is obviously more flexible here as they have a history with multiple foundry partners throughout the past two decades.

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AMD has set an aggressive, but achievable, timetable of product releases that is initially focusing on the CPU side but would logically be transitioning to the GPU side. Zen+ is out on time and has met with acclaim from consumers and reviewers alike. The latest GPU products are comparable in performance to what NVIDIA has to offer, though they are less power efficient for that level of performance. The “pipecleaner” Vega on 7nm will pave the way towards Navi based products that look to be introduced next year. AMD could possibly refresh Vega on 12nm, but so far there has been no concrete information that such a product exists. They may very well continue to rely on current Polaris and Vega products throughout the rest of this year while focusing on Navi efforts to have a more competitive part come 2019.

Q2 2018 looks to be another successful quarter for AMD. The company’s outlook calls for revenue in the $1.725 billion range, plus or minus $50 million. AMD expects continued growth in all Ryzen product lines and greater throughput of EPYC based products as companies test and release products based on that platform. The GPU market could remain flat, but will most likely decline. That decline will be more than covered by the sell-through of the Ryzen line from top to bottom.

AMD improved their margin by an impressive 4%. Going from 32% to 36% showed the strength and higher ASPs of both CPU and GPU products. AMD expects another 1% increase over the next quarter. While these are good numbers for AMD, they do not match the 58%+ for NVIDIA and Intel when it comes to their margins. AMD certainly has a lot of room for improvement, and a richer product stack will allow them to achieve greater ASPs and see a rise in their overall margins. If EPYC becomes more successful, then we could see another significant improvement in margins for the company.

AMD is getting back to where they belong in terms of product placement, competitiveness, and financial performance. The company has seen a huge improvement year on year and hopes to continue that with a rich product stack that addresses multiple areas of computing. AI and machine learning is ramping up in the company in terms of software support as they feel their CPUs and GPUs are already good enough to handle the workloads. As more money comes in, they can afford to diversify and create a wider product base to compete in more markets. So far Lisa Su has been very, very successful in helping pull AMD from the ashes to the competitive situation that they currently find themselves in.

 

Source: AMD