Advanced Micro Revenues Increase In Fabless Chipmaking

Advanced Micro Devices, becomes the highest performing company in the top ranking of fabless IC companies. This is based on 1Q18 results, as compiled by market research firm TrendForce.

AMD’s revenue, which increased by 67.4% was as a result of an increase in demand for processors used in cryptocurrency mining. Another attribute was the fact that the company continues to strengthen its computing and graphics processors business.

Of all the companies that made it to the top-10 list, it is only two companies that showed declining sales. BothMediaTek Inc. andNovatek Microelectronics Corp were victims of the downward results.

Analysts’ Prediction

AMD’s sales, which stood at $1.65 billion surpassed the $1.57 billion that analysts had predicted. The chipmaker’s shares jumped by 11% after the company’s results surpassed the analyst’s prediction.

AMD went ahead to announce its projection for the second quarter. Whereas analysts’ sales projection for the period is estimated at $1.58 billion The company projected their sales estimate at approximately $1.72 billion.

Graphics Business Segment was the one that recorded the highest gains for the chipmaking company. It recorded a revenue of $1.12 billion, which was a huge increase of 95%.

Even though there was a significant rise in the company’s performance, AMD’s Embedded and Semi-Custom segment suffered a slight 12% decline. The segment which deals with customized chips for game console makers may have suffered due to an increase in the licensing of businesses dealing in gaming console.

NVIDIA Corporation managed to be the second in the list of highest growth in revenues. It was able to grow its sales 50.6%.

In spite of, Dialog Semiconductor making it tenth in the list. It was able to increase its sales by 22.6% making it the third in terms of companies with the highest sales growth.

More Good News

Intel Corporation manufacturers of the 10-nanometer chip recently announced that it is going to delay the volume production of the said chip until next year.

This is welcome news for AMD who are planning to start production of their next generation 7 nanometer chip this year. According to sentiments echoed by analyst Christopher Rolland; he feels that Intel’s delay will boost AMD’s competitiveness for their next generation Epyc server chips and Ryzen mobile chips.

 

 

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