AMD To Increase Its GPU Production, Predicts Double-Digit Growth In Revenue
2017 has been a very good for AMD as the company’s revenue increased 34% and a 35% increase in Global margin, however, AMD has high hopes for 2018 too and has predicted a double-digit revenue growth for 2018 and has also increased the GPU production.
During a recent earnings call, AMD CEO Dr. Lisa Su admitted that there is a shortage of GPUs in the market but, noted that AMD has increased the GPU Production to meet the demand.
However, she added that manufacturing more GPUs isn’t a problem for the company but, the ongoing GDDR5 and HBM shortages will be a hurdle between the company and its goal.
She further noted that she expects the demand for Graphics Card to stay strong for the first half of 2018 thanks to Cryptocurrency miners, Su added that it is hard to calculate but, the digital currency mining makes up almost 10% of the company’s annual revenue. The following is what she had to say about GPUs shortage and production:
“The GPU channel is lower than we would like it to be. So, we are ramping up production. At this point, we’re not limited by Silicon per se, so our foundry partners are supplying us. There are shortages in memory and I think that is true across the board whether you’re talking about GDDR5 or talking about High Bandwidth Memory [HBM]. We continue to work through that with our memory partners and that will be certainly one of the key factors going into 2018.”
Not only that, the company expects a total revenue for its first quarter of 2018 to be somewhere around $1.5 Billion. Furthermore, Su predicts that the company will see double-digit growth in annual revenue.
This increase in revenue will help AMD to further its Reseach and Development as it is trying to improve the existing architectures of its GPUs, CPUs, and APUs.
Speaking of AMD CPUs, the company will reveal new details about Ryzen 2 CPUs. The company will be hosting a session regarding optimizing games for Ryzen CPUs and during the same presentation at Game Developer Conference (GDC), the company will reveal details about “upcoming next-generation Ryzen processors” during the same session.
Furthermore, according to Neil Spicer, Director Sales- EMEA Component Channel at AMD, has noted that the need for high-performance processing power will increase even more in coming years that will, in turn, benefit the company.
According to Neil, applications and software, these days have become more and more demanding of processing power and this will continue to increase and AMD is currently fully equipped to provide both processors and graphics cards to professional and gaming markets.