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AMD Makes Analysts Eat Their Words With Strong Q2 Financials

AMD has been on the rise ever since the company made a comeback by releasing AMD Ryzen and Vega. The company has been doing pretty well. Analysts predicted that AMD would take a hit in Q2 2018 due to plenty of reason including the decline in demand for graphics cards due to the decline in cryptocurrency markets but that has not been the case.

According to the numbers, second quarter revenue of $1.76 billion was recorded which is a 53 percent rise year-over-year. As compared to the previous quarter, revenue has increased from $532 million to $670 million. According to AMD CEO Lisa Su:

Turning to large enterprise customers, we added dozens of new end customers in the quarter. Our value proposition continues to be strong in segments like HPC, data analytics and in general-purpose virtualized enterprise environments. We are extremely focused on accelerating EPYC processor adoption in these targeted segments in the second half of the year.

The Computing and Graphics segment declined slightly, 3% to be precise. This is mainly due to the blockchain market, as mining is no longer profitable for the majority. It is safe to say that the mining boom is over and the people that have mined coins are lucky to have taken the opportunity. Getting into mining now will not be worth it.

The Computing and Graphics segment decline is the only downsize. Enterprise, Embedded and Semi-Custom business segment showed positive results. The segment saw 37 percent year-over-year and a 26 percent quarter-over-quarter increase. Lisa Su commented on the matter and the following is what she had to say in this regard:

We had an outstanding second quarter with strong revenue growth, margin expansion and our highest quarterly net income in seven years. Most importantly, we believe our long-term technology bets position us very well for the future. We are confident that with the continued execution of our product roadmaps, we are on an excellent trajectory to drive market share gains and profitable growth.

AMD has been pulling all the right moves, at least when it comes to the CPU side of things. There are still some CPUs in the works that have yet to be released. These upcoming chips are going to be released for both desktop and mobile. These include the AMD Ryzen 2500X and the Ryzen 7 2800H.

We also know that AMD will be sampling 7nm chips this year and they are expected to be released next year.