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AMD earnings confirm that it bites Intel’s market share

Advanced Micro Devices is just around the corner and is stealing market share from archrival Intel, based on earnings results reported today. The manufacturer Sunnyvale, California of PC processors and graphics chips reported revenues of $ 1.65 billion for the quarter, 40 percent more than the previous year. Since the PC market is not growing at 40 percent, and since rival Intel is not growing that fast either, it's logical to conclude that AMD's latest processors are taking market share.

The trend was evident in the previous quarter. With the launch of its Zen-based processors in 2017, Advanced Micro Devices experienced a rare gain in market share, from 8 percent in the fourth quarter of 2016 to 12 percent in the fourth quarter of 2017, compared to its archirrival Intel, according to market researcher Mercury Research. Now AMD has launched a wider range of chips that attack the broader Intel product line.

It is not always easy to know how much action AMD is winning, since it combines revenues from processors and graphics in the same division of Computing and Graphics. This quarter, that division increased revenues to $ 1.12 billion, up 95 percent from a year ago, thanks to the sales of both Ryzen processors and Radeon graphics.

AMD was expected to earn 9 adjusted cents per share in the first quarter ended March 31, compared with a loss of 4 cents per share a year earlier. It was expected that revenues would be $ 1.57 billion, compared to $ 984 million the previous year. Actual results reached 11 cents per share in net income over income of $ 1.65 billion.

Above: AMD CEO Lisa Su

Image credit: AMD

Last week, AMD launched its second generation of Ryzen desktop chips. The Zen-based architecture can process 52 percent more instructions per clock than the previous generation. AMD launched its fastest Ryzen chips based on Zen a year ago, and now Zen technology is penetrating through the entire product line. The first Ryzen chips were released in March 2017, and in October 2017, AMD reported a return to profitability. AMD also launched its server chips based on Epyc Zen last summer, and in February launched Ryzen mobile accelerated processing units, which combine a processor and graphics on a single chip. AMD also debuted its 16-core high-end Threadripper processor, a competitor to the fastest desktop processor, last August.

The new Ryzen chips are intended for PC gamers and content creators, or the high-end PC business. Anderson said that AMD will launch 60 new Ryzen systems with its partners this year. Two thirds of those are mobile customers.

Of course, the stock price of AMD and rival graphics chip maker Nvidia often takes advantage of the fortune of the cryptocurrency, since the graphics chips are used to extract currency based on block chains. The cryptocurrency is a small part of the general demand for graphics chips, but operators have fallen in love with the rise in prices of graphics chips that has come with the new popularity of Bitcoin and other cryptocurrencies. AMD did not mention sales related to cryptocurrencies in its press release.

AMD said that business, integrated and semi-personalized revenues (which include game console chips) decreased 12 percent to $ 532 million. This decrease was partially offset by the increase in revenue of the Epyc server processor. Intel reports its results on Thursday.

"The first quarter was an outstanding start to 2018 with a 40 percent growth in revenue year after year," Lisa Su, CEO of AMD, said in a statement. "The adoption of PCs, games and data centers for our new high-performance products continues to accelerate, we are excited about our long-term work plans and are focused on delivering sustained revenue growth and profitability."

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