What to Expect from AMD for the Next 3 Quarters

Quarter 1

The company’s first quarter ends on March 31st, and many don’t expect much, but an exceeding 18% revenue increase in the projection of management would catch many by surprise. The January 31st press release predicted an 18% revenue increase year-over-year. The Ryzen 7 series release on March 2nd is expected to boost sales, and it is assumed that the financials of the release were considered during the January press statement.

For the first time in a long time, AMD can afford to boast of 7 of the top 20 CPUs being from the company. Wccftech.com says that historically only 2 or 3 AMD CPUs make the top 20 cut. The highest priced processor from AMD was the Ryzen 1800X which sold for $499 each. Compared to old processors, the new Ryzen processors generate 3 to 4 times the revenue per unit. Of note is that four of the old AMD CPUs make the top 20 list and this is an indicator of add-on sales rather than replacement sales. The Ryzen 5 is expected to be released on the 11th of May, and this might see AMD have the majority of processors in the top 20 list.

2016 witnessed a .12 loss a share, so it is expected that the increase in sales in 2017 will lower interest costs and from the bond redemption and this will see them break-even or at worst lose a few pennies per share. A profit margin of as low as a penny a share would have a positive impact on the share price.

Quarter 2

Quarter 2 will have a full quarter that is expected to see an increase in the sales of the Ryzen 5 and 7 series. Most of these processors are suited for gamers and computer users with an in-depth knowledge of how to buy and assemble a PC from differently sourced parts. The Ryzen 1800X, unlike its predecessor, the 1700 model, has sneaked into the high-end market. The gaming market is no doubt a huge market; it rakes up an average of $30 billion according to research by Jon Peddie.

Rumour has it that AMD would target the High-End Desktop Market with a monster 16 core, 32-thread Ryzen desktop chip. The introduction of such a processor would cause increased revenue streams, but it remains to be speculation.

Workstations have not adopted AMD as much as the gaming sector. This is expected to take a while longer, and it is expected that the sales will be largely from high-value CPUs and GPUs.

Quarter 3

Quarter 3 could see a number of events among them being full quarter Ryzen desktop sales, Naples server sales and Vega GPU sales. Game consoles are expected to experience their biggest quarter with Microsoft’s new Scorpio and Sony’s new VR consoles driving revenues higher. AMD should announce its re-entry into the high-end workstation market. These are just but some of the things that would offer AMD a big breakout if they happened.


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