Wed, Jan. 20, 9:13 AM
Tue, Jan. 19, 4:34 PM
- Though AMD beat Q4 revenue estimates and posted in-line EPS, the company is guiding for Q1 revenue to be down 14% Q/Q (+/- 3%). Consensus is for revenue to drop 6% Q/Q to $900.2M.
- In its CFO commentary (.pdf), AMD blames the guidance on "game console seasonality and a cautious macro environment in China." Last week, Intel stated on its Q4 call it's seeing macro pressures in China and other Asian markets.
- PC CPUs/GPUs: Computing & Graphics (PC CPU/GPU) revenue fell 29% Y/Y in Q4 to $470M; segment op. loss totaled $99M vs. $56M a year ago. Lower client (PC) CPU sales are blamed for the revenue drop. CPU ASPs rose Q/Q and fell Y/Y; GPU ASPs rose Q/Q and Y/Y due to a higher graphics card channel ASP.
- Enterprise, Embedded & Semi-Custom: Segment revenue fell 15% Y/Y to $488M; segment op. profit was $59M vs. $109M a year ago. The sales drop is blamed on "lower game console royalties, and server and embedded sales."
- Financials: Non-GAAP gross margin was 30% vs. 23% in Q3 and 34% a year ago. Q1 GM guidance is at 32%. Job cuts at work: Non-GAAP operating expenses fell $13M Q/Q and $43M Y/Y to $323M. AMD ended Q4 with $785M in cash and $2.26B in debt.
- In spite of the weak Q1 guidance, AMD forecasts revenue will be up Y/Y in 2016. The pre-earnings consensus was for a 1.1% decline.
- AMD has dropped to $1.80 after hours.
- Q4 results, earnings release
- Update (6:14PM ET): The post has been updated to include additional details about AMD's results and guidance. Shares are currently down 6.2% after hours.
Tue, Jan. 19, 4:22 PM
- Advanced Micro Devices (NASDAQ:AMD): Q4 EPS of -$0.10 in-line.
- Revenue of $958M (-22.7% Y/Y) beats by $3.26M.
- Shares -7%.
Tue, Jan. 19, 9:17 AM
Mon, Jan. 18, 5:35 PM
Fri, Jan. 15, 12:35 PM
- On a day the Nasdaq is off 4.1%, companies with strong PC exposure are seeing even bigger losses after Intel (down 9.2%) beat Q4 estimates and provided healthy 2016 sales guidance, but also reported a slowdown in server CPU sales growth and offered cautious earnings call remarks about Chinese demand and macro trends.
- Intel's Client Computing Group (provides PC/mobile CPUs) only saw a 1% Y/Y revenue drop in Q4 in the face of weak PC demand. However, volumes were down 16%, with desktop, notebook, and tablet CPU volumes respectively falling 9%, 10%, and 33%. A 17% increase in ASPs minimized Intel's revenue drop. Earlier this week, IDC and Gartner respectively estimated PC shipments fell 10.6% and 8.3% Y/Y in Q4.
- The list of PC-related names seeing big losses includes Microsoft (MSFT -4.8%), Nvidia (NVDA -6.7%), AMD (AMD -8.1%), HP Inc. (HPQ -5.2%), Micron (MU -8.9%), Seagate (STX -6.4%), and Western Digital (WDC -6.4%). AMD reports on Jan. 19, Microsoft and Western on Jan. 28, and Seagate on Jan. 29.
- In other Microsoft news, the company has carried out price cuts of up to 17% for Azure cloud computing services, following new price cuts from Amazon, and is reportedly looking to acquire Indian mobile ad network owner InMobi. Google was rumored to be in buyout talks with InMobi last year.
- AMD, meanwhile, has begun shipping its Opteron A1100 (Seattle) ARM server CPU. Seattle, first announced in 2013, sports up to eight 64-bit ARM Cortex A-57 CPU cores, and enters a market also targeted by AppliedMicro, Cavium, and Qualcomm.
Tue, Jan. 12, 5:56 PM
- IDC estimates global PC shipments fell 10.6% Y/Y in Q4 to 71.9M, just a slightly smaller drop than Q3's 10.8%. Gartner is once more a little less downbeat, estimating shipments fell 8.3% to 75.7M.
- For the whole of 2015, IDC estimates shipments fell 10.4% to 276.2M. The firm notes adding detachable tablets to its count would respectively provide ~6% and ~3% boosts to Q4 and 2015 growth rates.
- The Q4 figures suggest Windows 10 (available as a free upgrade to Windows 7/8 users) and Intel's (NASDAQ:INTC) Skylake CPU launch provided only a modest sales lift. IDC: "The PC market continued to face persistent challenges [in 2015] from longer-PC lifecycles and competition from mobile phones and tablets, despite the slowing growth in those markets. However, economic issues like falling commodity prices and weak international currencies, as well as social disruptions in EMEA and Asia/Pacific that disrupted foreign markets were a larger factor for 2015."
- IDC VP Loren Loverde still thinks PC replacement rates will pick up in 2016. "Commercial adoption of Windows 10 (NASDAQ:MSFT) is expected to accelerate, and consumer buying should also stabilize by the second half of the year. Most PC users have delayed an upgrade, but can only maintain this for so long before facing security and performance issues." Counting detachable tablets, IDC expects 1%-2% 2016 growth. Gartner forecasts a 1% decline.
- Lenovo (OTCPK:LNVGY) remained the PC market's top player: IDC estimates Lenovo's shipment share rose 140 bps Y/Y in Q4 to 21.4%. #2 HP's (NYSE:HPQ) share rose 10 bps to 19.9%. #3 Dell's rose 70 bps to 14.1%.
- Apple (NASDAQ:AAPL) and Asus (OTC:AKCPF) were tied at #4 with 7.9% shares - Apple's share rose 110 bps, and Asus' 90 bps. Apple's revenue share could be closer to 15%. Non-top 5 vendors, hurt by their relative lack of scale, collectively saw their shipment share drop 420 bps to 28.7%
- Related tickers: NVDA, AMD, MU, STX, WDC
Tue, Jan. 5, 4:08 PM
- As of Jan. 3, Sony (SNE +3%) has sold 35.9M PlayStation 4 units since the console's Nov. 2013 launch, up from 30.2M in late November.
- Sony also states 35M+ PS4 games were sold through bricks-and-mortar stores and the PlayStation Store during the holiday season, and that PlayStation Plus subscriptions rose 60% Y/Y (no number has been given).
- All signs suggest global PS4 sales continue outpacing Xbox One sales, which totaled 10M as of Nov. 2014 (the time of Microsoft's last Xbox sales update).
- At the time of the PS4's launch, CPU/GPU supplier AMD (AMD -0.9%) was estimated by IHS to receive $100 per unit. Processor prices typically decline over a console's lifetime. However, even at $80/unit, 5.7M PS4 shipments would translate into $456M in revenue for AMD. The company has guided for Q4 revenue to drop 10% Q/Q (+/- 3%) from a Q3 level of $1.06B.
Mon, Jan. 4, 1:54 PM
- AMD is underperforming amid a market selloff on a day in which the company has unveiled (ahead of CES) its Polaris GPU architecture. Polaris, due in mid-2016, relies on a 14nm FinFET manufacturing process, and supports high dynamic range monitors, HDMI 2.0a, 4K h.265 video encoding/decoding, and DisplayPort 1.3. AMD also promises "industry-leading performance-per-watt."
- Official details about Polaris remain limited. The architecture succeeds AMD's GCN 1.2, which underpins the company's R9 Fury GPUs (launched in mid-2015), and promises command processor, geometry processor, memory controller, L2 cache, and display engine improvements. AMD claims a Polaris-based card will consume just 85W of power to play Star Wars: Battlefront at 60fps on the medium preset, less than the 140W consumed by a card using Nvidia's (NVDA -2%) mid-range GTX 950 GPU.
- The rumor mill has indicated Polaris-based GPUs (codenamed Arctic Islands) will support second-gen High Bandwidth Memory (HBM2), and include a flagship GPU (Greenland) featuring up to 18B transistors and supporting up to 32GB of memory. Arctic Islands/Polaris is expected to be used by PC/mobile GPUs, APUs, and semi-custom chips. There's also speculation Nintendo's next-gen NX console will feature an AMD semi-custom SoC relying on Arctic Islands.
- Nvidia plans to counter Polaris/Arctic Islands with its Pascal GPU architecture, which will leverage TSMC's 16nm FinFET process.
- Last week: MKM sees Nvidia, AMD benefiting from healthy GPU pricing
Dec. 30, 2015, 7:11 PM
- Hard-luck AMD has seend only "modest" Q/Q price declines for its high-end R9 GPUs, reports MKM's Ian Ing. He sees this boding well for the ability of AMD's GPU line to stay competitive competitive following its mid-2015 refresh.
- Nvidia (NASDAQ:NVDA) is seeing "even more favorable pricing trends," though parts of its GPU lineup are up to a year old. "Some higher end cards are up 1% to 6% sequentially quarter-to-date (January fiscal), although we didn’t see NVDA’s U.S. retail up by the widely reported 15% in China due to alleged shortages seen in some industry blogs." Digitimes previously reported strong demand (particularly from China) had led to shortages and markups for some Nvidia-based graphics cards.
- Ing sees several factors propping up GPU pricing. "Both NVDA and AMD are addressing the fast-growing gaming [addressable market] that benefits from increased leisure/ entertainment mindshare vs. traditional consumption, a strong season for AAA titles (STAR WARS Battlefront, Call of Duty, Black Ops 3), and the social and professional aspects of eSports growth."
- Nvidia is coming off an October quarter (FQ3) in which its GPU sales rose 12% Y/Y to $1.11B, as a 40% increase in gaming GPU sales offset PC OEM, workstation, and HPC/cloud weakness. AMD, hurt by PC weakness and share loss, saw its PC CPU/GPU division's sales rise 12% Q/Q and fall 46% Y/Y in Q3 to $424M.
- Looking ahead to 2016, AMD reportedly plans to launch a next-gen GPU line codenamed Arctic Islands in the summer. The GPUs are expected to use Samsung/Globalfoundries' 14nm manufacturing process and support second-gen High Bandwidth Memory (HBM2), with a flagship GPU (codenamed Greenland) featuring up to 18B transistors and supporting up to 1TB/s of memory bandwidth.
- Nvidia, for its part, plans to launch its Pascal GPU architecture at some point in 2016. Pascal will use TSMC's 16nm manufacturing process, deliver (via HBM2) ~1TB/s of memory bandwidth, and support Nvidia's NVLink interconnect, which is promised to deliver much higher speeds than PCIe 3.0.
Dec. 22, 2015, 2:57 AM
- Samsung Electronics (OTC:SSNLF) will begin making new chips for Advanced Micro Devices (NASDAQ:AMD) next year, South Korea's Electronic Times reports.
- The paper said Samsung's foundry business and Globalfoundries will jointly start producing a central processing chip as well as a graphics processing chip for AMD using their 14-nanometre technology.
- The firm already makes chips for companies such as Apple and Nvidia.
Oct. 15, 2015, 4:38 PM
- Along with its Q3 results, AMD announces it's forming a JV with Chinese chip assembly/test firm Nantong Fujitsu Microelectronics to handle its assembly, testing, marking, and packaging work, while also going after 3rd-party customers. Nantong will have an 85% stake in the JV, for which it will pay AMD $371M in cash. AMD will receive $320M net of expenses.
- AMD, which long ago outsourced chip manufacturing, will contribute its assembly/test facilities and ~1,700 employees. The JV will ultimately have 5 facilities and 5,800 employees. The deal is expected to close in 1H16.
- Though missing Q3 EPS estimates, Q3 revenue of $1.06B topped a $996M consensus. However, Q4 guidance is for revenue to drop 10% Q/Q (+/- 3%). Consensus is for revenue to drop 6% Q/Q to $996M.
- Segment performance: Computing & Graphics (PC CPU/GPU) revenue +12% Q/Q and -46% Y/Y to $424M; segment op. loss rose to $181M from $17M a year ago. Enterprise, Embedded, & Semi-Custom revenue +13% Q/Q and -2% Y/Y to $637M; segment op. profit fell to $84M from $108M.
- PC CPU ASP fell Q/Q and Y/Y due to lower notebook CPU ASP (Intel's ASP rose). GPU ASP was flat Q/Q and up Y/Y (boosted by the Fury launch). Semi-custom (console APU) sales grew Q/Q. Embedded and server CPU sales fell Y/Y.
- Financials: Thanks to an inventory write-down, gross margin fell to 23% from 28% in Q2 and 35% a year ago. GM is expected to rise to 30% in Q4. Job cuts led R&D spend to drop $37M Y/Y to $241M, and MG&A spend by $32M to $108M. The cash balance fell by $74M Q/Q to $755M; debt was roughly flat at $2.26B.
- AMD +1.5% after hours to $2.00.
- Q3 results, PR, CFO commentary (.pdf), slides (.pdf), JV presentation (.pdf)
Oct. 15, 2015, 4:20 PM
- Advanced Micro Devices (NASDAQ:AMD): Q3 EPS of -$0.17 misses by $0.05.
- Revenue of $1.06B (-25.9% Y/Y)
- Shares +3.1%.
Oct. 14, 2015, 5:35 PM
Oct. 13, 2015, 9:32 AM
- Apple's (AAPL -0.7%) 4K 21.5" iMac, rumored to be on the way, runs on a 5th-gen Intel (NASDAQ:INTC) CPU (Broadwell) and an integrated Iris Pro GPU, and sells for $1,499. Non-4K (1080p) 21.5" models sell for $1,099 and $1,299.
- The company's 5K 27" iMacs now sport 6th-gen Intel CPUs (Skylake, recently launched) and AMD R9 GPUs, and sell for $1,799, $1,999, and $2,299; they previously started at $1,999. Non-5K 27" iMacs are being dropped from Apple's lineup.
- The 4K/5K iMac displays are said to sport a wider color gamut, and all iMacs now come with two Thunderbolt 2 (20Gbps) ports. Meanwhile, Apple has launched three new peripherals - Magic Trackpad 2 ($129), Magic Mouse 2 ($79), and Magic Keyboard ($99) - for its desktops. Magic Trackpad 2 supports Force Touch (pressure-sensitive controls).
- In March, Apple launched a 12" retina MacBook with a Force Touch trackpad. In May, it launched a 15" Force Touch-capable MacBook Pro, and cut the price of its cheapest 5K 27" iMac to $1,999.
- Last week: PC sales drop sharply in Q3; Apple unit share estimated at 7.5%
- Update: Steven Levy provides details about Apple's design process for the new iMacs, relying on discussions with VP Phil Schiller and other execs.
Oct. 8, 2015, 5:23 PM
- IDC estimates global PC shipments fell 10.8% Y/Y in Q3 to nearly 71M units, a drop nearly as large as Q2's 11.8% and above a 9.2% projection. Gartner estimates shipments fell 7.7% to 73.7M.
- IDC: "Across many regions, the channel remained focused on clearing Windows 8 inventory before a more complete portfolio of models incorporating Windows 10 (NASDAQ:MSFT) and Intel (NASDAQ:INTC) Skylake processors comes on the scene ... Though easing a bit, currency devaluation continued to inhibit PC shipments in the third quarter. While Windows 10 has generally received favorable reviews and raised consumer interest in PCs, many users opted to upgrade existing PCs rather than purchase new hardware."
- Nonetheless, IDC is "optimistic" about a demand pickup. "While PC shipments will be hampered in the short run by the availability of a free upgrade to Windows 10, the improved PC experience across user segments should drive longer-term demand for new PC hardware..."
- Likewise, Gartner expects "more stable market conditions" in 2016. It's also pleased the U.S. notebook and "premium ultramobile" segments saw positive growth. Various analysts have reported seeing signs of stabilizing PC demand.
- With tablet sales also under pressure, tablet cannibalization is less of an issue than before. The ability of older PCs to handle mainstream computing tasks without trouble (including on Windows 10) may be a bigger problem. Many in the industry are hoping 4K video and/or virtual reality will fuel upgrades.
- The market's four biggest players all grabbed share from smaller firms with less scale. IDC estimates market leader Lenovo's (OTCPK:LNVGY) unit share rose 130 bps Y/Y to 21%, #2 HP's (NYSE:HPQ) 110 bps to 19.6%, and #3 Dell's 120 bps 14.3%.
- Apple (NASDAQ:AAPL), aided by 1H15 MacBook refreshes, came in at #4 with a 7.5% share, up 60 bps (revenue share is likely closer to 15%). A 4K 21.5" iMac is reportedly launching next week.
- Acer (OTC:ASIYF) rounded out the top-5 with a 7% share, down 150 bps. Everyone else collectively fell 270 bps to 30.6%.
- Related tickers: AMD, NVDA, STX, WDC, HTCH
Advanced Micro Devices, Inc. is a global semiconductor company that develops computer processors and related technologies for business and consumer markets. It design and integrate technology for intelligent devices, including personal computers, game consoles and cloud servers. The company... More
Industry: Semiconductor - Broad Line
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