After weak numbers from Intel for the first three months of the year late last week with a year-over-year sales decline, the focus in the middle of the first week of May was on AMD: And they delivered.
As usual at AMD, expectations were not low: more than 45% more sales than a year ago should be the 5 billion dollar mark to cross. And the profit should also increase, preferably doubled. And AMD did not disappoint, quite the contrary.
AMD once again very strong
5.9 billion dollars in sales and therefore 71% more than a year ago exceeds even the wildest expectations. Profits also rose, but not as much as hoped, to just $786 million. Both figures include for the first time a share of Xilinx, without which sales would have been around US$5.3 billion. But this acquisition, as well as the next one planned by Pensando, will weigh on short-term profits.
And it is precisely the professional segments that will take over the scepter at AMD. The division around professional solutions from AMD Epyc and Instinct as well as custom chips for game consoles continues to grow the fastest, and now Xilinx will always be added.
Given that in the second quarter Xilinx is no longer booked for just six weeks but for the full 13-week period for AMD and that the additional activity will not falter either, AMD expects a further increase in sales in the second quarter to approximately 6.5 billion US dollars. . Thanks to Xilinx and the very good outlook of the professional division, the outlook for the full year has now recovered to US$26.3 billion in revenue, three months ago it was 21, US$3 billion.
AMD: Sales and profits since Q4/2003
Intel in the first quarter: Maue’s numbers sold as positive
As expected, Intel highlighted the positive in the quarterly report for the first three months, but in the end it was above the expectations set in advance. But they were anything but high, which is why in the end there are still 7% less sales than a year ago. Now, however, the NAND division is missing, but even without it there would have been a drop in sales.
The consumer division in particular slumped with a 13% minus, no more Apple modems and weak demand in the OEM sector left their mark, which despite a 25% higher average price for all products from the region, could not be fully compensated. It is once again interesting to see how important the laptop sector is to Intel, where sales are more than twice as high as the desktop processor sector. In detail, it also becomes clear here that the price increases are mainly for mobile processors, an average of 32% in laptops.
Notebook computer revenue was $6.0 billion, down $997 million from the first quarter of 2021. Notebook computer unit sales were down 35% due to lower demand in the consumer and education market segments following a cycle of supply chain inventory digestion from COVID-related highs in the first quarter of 2021, partially offset by a 32% increase in ASPs due to an increased mix of commercial and consumer products, and a lower mix of education.
Desktop computer revenue was $2.6 billion, down $130 million from the first quarter of 2021. Desktop computer unit sales were down 11% due to lower demand in the consumer and education market segments, partially offset by a 7% increase in ASPs, driven by the business recovery from COVID-19.
The fact that net profit looks so good at over US$8.1 billion is due to a one-time payment related to the liquidation of the McAfee division, which injected an additional US$4.6 billion into the coffers of Intel.
Intel: Sales and Profits since Q1/2003
For the current quarter, Intel still sees no real recovery, similar sales of US$18 billion are expected.