AMD makes the largest turnover in the history with next-gen Ryzen, Epyc and Radeon

AMD disclosed its financial figures for the past year, revealing strong sales growth in the fourth quarter and continuing momentum in 2020. In response, AMD’s equity value has declined as AMD has failed to meet some of the analysts’ predictions in its 2020 forecast.

AMD is closing 2019 with strong revenues and is forecasting margin growth of 45% in 2020

AMD is aiming for a 28-30% sales growth by 2020. In what way will it achieve this growth? Right, by increasing hardware sales. How will these sales be achieved? Surely, with a strong product offering.

AMD makes the largest turnover in the history with next-gen Ryzen, Epyc and Radeon

First of all, AMD had sales of $2.127 billion in the fourth quarter of 2019, which is 50% year-on-year growth and 18% quarter-on-quarter growth. AMD’s gross margin also increased from 38% in the fourth quarter of 2018 to 45% in the fourth quarter of 2019, showing that the company has increased its gross revenues and profit margins.

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Compared to the third quarter of 2019, AMD’s operating income increased 87%, giving AMD more money to share with its investors and more money for research and development.

AMD makes the largest turnover in the history with next-gen Ryzen, Epyc and Radeon

In 2019, the gross margin rose by 15%, with a 4 percentage points increase from 39% to 43%. In 2020, AMD expects gross margins to increase to approximately 45%, underscoring the company’s improved profitability. With these higher margins, AMD’s operating income in 2019 will be 33% higher than in 2018. AMD’s operating revenues are expected to continue to grow in 2020.

AMD makes the largest turnover in the history with next-gen Ryzen, Epyc and Radeon

With revenues up 28-30% and gross margins up two percentage points, AMD’s profits in 2020 are expected to be much higher than at any time in the last decade.

Indeed, this growth will help the red company to invest in more products and increase its R&D spending and focuses on all factors that can only be good for the CPU market to move forward.

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