Introduction:
Recently, chip giants have released their performance. In this article, we focus on the performance of several major chip giants this quarter and take a look at the industry trends behind this quarter's performance.
in the early stage, due to the widespread spread of Omickron , Europe and the United States have further relaxed. With further return to offline, sales of electronic products benefiting from the epidemic have slowed down. Under the influence of the highest inflation in 40 years, optional consumption is under collective pressure, and the demand for electronic products, including TVs, computers, and smartphones has been slowed down. Therefore, the market is also very worried about the performance of chip giants, and the stock price trend is weak. The Philadelphia Semiconductor Index has fallen by more than 30% this year, which is a tragic situation.
From the trend of leading stocks, the two YYDS leaders Nvidia and AMD both retreated from the stock price high point by about 50%. Weak PC sales and slowing game demand have continued to hit the market's confidence. In the end, from the disclosed performance, the performance of chip giants is not as fragile as market expectations, and their performance is very resilient, even exceeding market expectations. The core behind this is that under the big wave of digitalization of everything, the performance of chip giants has become more diversified, and the east is not bright, and the west is bright. The direct result of this is that the performance of giants has become smoother.
Although the dividend brought by the epidemic seems to be fading, the core point is that some varieties that have deeply benefited from the epidemic quarantine performance was lower than expected, including peloton, docusign, zoom, etc. In fact, the trend of digitalization is still continuing, especially the digitalization of the B-end. cloud computing is reconstructing the B-end ecosystem from all aspects, and has almost become a place for military strategists and soldiers of various giants.
According to statistics from relevant institutions, the past 2021 has ushered in another key node, that is, data centers surpassed the mobile market and became the largest memory and storage market (previously, in 2012, the mobile market surpassed the PC market and became the largest memory and storage market).
Not long ago, Mehrotra, CEO of Micron Technology, also said that data centers have replaced mobile devices as the largest memory and storage market in 2021. Mehrotra also said that in the second quarter of micron fiscal year ended March 3, data center revenue increased by more than 60% year-on-year due to strong demand from its DRAM and SSD product portfolio. Micron expects data center SSD revenue to continue to grow strongly for the rest of the fiscal year.
It can be seen that under the rapid acceleration of the Internet of Things and the digitalization of everything, more and more life and industrial scenarios are migrating online, the application scenarios of chips are becoming more and more abundant, and the data generated is becoming more and more massive. The storage, transmission and processing of data all require chips to provide support. Therefore, as the fundamental embodiment of the logic of traffic explosion, the growth of data center chips is in an accelerated period. We continue to be optimistic about the data center chip-related company
can track the monthly revenue data of Taiwan Xinhua Technology (5274.TWO), which can track the shipment of European and American servers well, thereby indirectly tracking the construction of European and American cloud computing data center . In recent months, Xinhua's shipment data has been improving, indicating that the server industry is constantly improving.
Xinhua Technology was founded in 2004. It combines a group of outstanding talents with more than ten years of experience in IC software and hardware design, and observes new market trends and business opportunities, and is determined to jointly create the established Fabless IC design company.
Xinhua Technology's corporate mission is to continuously provide innovative software and hardware solutions based on SOC architecture for the remote control, management and information security of personal computers and servers computers.
Xinhua Technology has professional IC design experience and processes, so that the designed ICs can be quickly commercialized. Currently, there are main IC products such as AST1000, AST1100, AST2000, AST2050 and AST2100, which are mainly used in network and remote display and control, and provide customer planning with diversified and flexible product specifications. It has obtained orders from many foreign computer server manufacturers such as IBM, DELL, Sun Micro... and has become one of the top two suppliers of KVM network processor chips in the world.
This business opportunity lies in improving the ability of IT personnel to directly manage and maintain server computers at all operating points of the company at any time and anywhere through regional or Internet networks, in order to significantly reduce the total cost of ownership invested by the company in the infrastructure of server computers. The key lies in the technological innovation of "servo computer remote drawing and peripheral device control IC".
From the above figure, we can see that Xinhua's monthly revenue has been accelerating since August last year. Xinhua's revenue in April hit a new single-month high, and increased by 60.75% year-on-year compared with , indicating that server shipments are very prosperous.
cloud computing data center field, continue to focus on the three major chip giants AMD, Nvidia and Maywell Technology, and in addition to the upstream EDA dual oligopolies CDNS and SNPS.
This article will take you to see the latest performance of chip companies in the first quarter. We focus on the growth of the data center chip field.
AMD New quarterly performance analysis: Data center chips grew by 88% year-on-year, continuing to exceed expectations
○ 2022 First quarter performance summary
· Revenue was US$5.9 billion, a year-on-year increase of 71%, and increased by 22% month-on-month, thanks to the increase in revenues of computing and graphics as well as enterprises, embedded and semi-customized departments and the revenue of Xilinx for mergers and acquisitions.
· gross profit margin was 48%, an increase of 2 percentage points year-on-year and a decrease of 2 percentage points month-on-month. The year-on-year growth was mainly due to the higher server processor revenue and high profit Xilinx revenue, partially offset by the amortization of intangible assets and the acquisition-related costs. The month-on-month decline was mainly due to intangible assets amortization and acquisition-related costs
· Non-US GAAP gross profit margin was 53%, an increase of 7 percentage points year-on-year and 3 percentage points month-on-month. 's year-on-year growth is mainly due to higher server processor revenue and high profit
Xilinx revenue. The quarter-on-month growth was driven mainly by high-profit Xilinx revenue, higher server processor revenue and a richer client portfolio of operating profit of
·, compared with $662 million a year ago and $1.2 billion in the previous quarter. The year-on-year growth was mainly due to increased revenue and gross profit, partially offset by intangible assets amortization and acquisition-related costs. The quarter-on-month decline was mainly due to intangible asset amortization and acquisition-related costs
· Record non-GAAP operating profit was $1.8 billion, compared with $762 million a year ago and $1.3 billion in the previous quarter. Year-on-year and quarter-on-month growth was driven mainly by higher gross profits. The net profit of
· was US$786 million, compared with US$555 million in the same period last year and US$974 million in the previous quarter. The year-on-year growth was mainly due to the increase in operating income. The quarter-on-month decline was mainly due to a decline in operating income related to intangible asset amortization and acquisition-related costs
· Record non-GAAP net profit was $1.6 billion, compared with $642 million a year ago and $1.1 billion in the previous quarter. Year-on-year and quarter-on-month growth was driven mainly by higher operating income
· Record operating cash for the quarter was $995 million, compared with $898 million a year ago and $822 million in the previous quarter. The record-breaking free cash flow in the quarter was US$924 million, compared with US$832 million in the same period last year, and US$736 million in the previous quarter
· AMD's balance sheet reflects the US$49.6 billion goodwill related to the acquisition of Xilinx and the acquisition of intangible assets
· Performance by product line
· Score products, computing and graphics maintained steady growth, while driven by the shipment of data center chips, the proportion of enterprise embedded and customized segment revenue continued to increase, and the revenue of this segment increased by 88% this quarter, continuing to exceed market expectations.
· Record revenue of the Computing and Graphics sector was US$2.8 billion, a year-on-year increase of 33% and a month-on-month increase of 8%. Year-on-year growth was driven by sales of Ryzen™ and Radeon™ processors. The month-on-month growth was driven by Ryzen processor sales.
· client processor average selling price (ASP) driven by a richer portfolio of Ryzen processor sales, both year-on-year and -month
·GPU ASP grew year-on-year driven by high-end Radeon processor sales, but due to the lower portfolio of revenue in data center GPU, it dropped month-on-month
·'s record operating profit was US$723 million, compared with US$485 million in the same period last year and US$566 million in the previous quarter. The improvement in operating profit was mainly due to increased revenue, partially offset by increased operating expenses
· Record revenue of US$2.5 billion, up 88% year-on-year and 13% month-on-month, mainly due to higher EPYC™ processor revenue, semi-custom and embedded product sales.
From the perspective of the revenue growth rate of enterprises, embedded and semi-customized branches, the explosive growth in the past two years is mainly due to AMD's fierce attack on Intel in the data center market, and with the accelerated development of the industry, it ushered in a rapid increase in volume.
· recorded record operating profit of $881 million, compared with $277 million a year ago and $762 million in the previous quarter. The increase in operating income was driven primarily by higher revenue and $83 million in licensing revenue.
· Xilinx revenue for some quarters was US$559 million and operating income was US$233 million. Based on the full quarterly preparation, Xilinx generated more than $1 billion in revenue, a year-on-year increase of 22%, thanks to growth in all major end-market categories of Xilinx.
· All other operating losses were $886 million, compared with $100 million a year ago and $121 million in the previous quarter. The higher operating losses are mainly due to the amortization of intangible assets and the costs associated with the acquisition.
○ Recent business highlights
·AMD Acquisition through Xilinx completed the largest acquisition in the history of the semiconductor industry, creating an industry leader in high-performance and adaptive computing, with a significant scale and a strongest portfolio of leading computing, graphics and adaptive SoCs.
·AMD announced a final agreement, , to acquire Pensando for approximately US$1.9 billion ahead of working capital and other adjustments. Pensando’s distributed services platform will extend AMD’s data center portfolio with high-performance data center processing units (DPUs) and software stacks that have been deployed at scale in cloud and enterprise customers such as Goldman Sachs , IBM Cloud, Microsoft Azure, and Oracle Cloud.
·AMD announces the full launch of , the third generation AMD EPYC processor , with AMD 3D V-Cache™ technology, providing leading performance in technical computing workloads, the industry's largest L3 cache, and modern security features.
· Cloud customers continue to expand their AMD EPYC processor-powered products, now with 465 cloud instances providing powerful performance for today’s most important workloads.
·Microsoft Azure upgrades its HBv3 virtual machine (VM) to , the third generation AMD EPYC processor with AMD 3D V-Cache technology, driving the fastest addition ever for the Azure High Performance Computing (HPC) platform.
·AMD EPYC processor now supports the new computing-optimized Google Cloud C2D VM, bringing strong performance to customers in areas such as electronic design automation and computing fluid dynamics.
·AMD provides new Amazon EC2 Hpc6a instances for HPC workloads, and Amazon EC2 6a instances for compute-intensive workloads, providing better cost-effectiveness than previous generation products.
· AMD expands its high-performance AMD Ryzen desktop processor lineup for gamers and creators.
·AMD announced the launch of the Ryzen 7 5800X3D processor, which is the first Ryzen processor to use AMD 3D V-Cache technology and the industry's first x86 PC processor to use 3D stacked chips.Compared to competitive processors without stacked cache technology, the Ryzen 7 5800X3D processor offers leading gaming performance in selected games.
·Lenovo extends its ThinkStation P620 workstation product line with the new Ryzen Threadripper™ PRO 5000 WX series processors, bringing leading full spectrum performance to the most demanding professional workloads.
·AMD also extends the Ryzen desktop processor portfolio with six new “Zen 3” and “Zen 2” processors, providing PC enthusiasts with more options to create customized gaming experiences.
·AMD extends Versal product lineup to deliver to customers the flagship Versal HBM adaptive SoC with integrated HBM2e memory, and the Versal Premium product lineup with AI engine optimized for signal processing-intensive applications such as next-generation radar and wireless system and device testing.
·AMD announced that its board of directors has approved a new 8 billion USD share buyback program . The plan complements the $4 billion stock buyback program announced last year.
·AMD signed a $3 billion line of sustainability-related credit to replace its existing $500 million revolving credit line and strengthened its commitment to the company’s environmental, social and governance goals.
·AMD announced its board of directors election Dr. Lisa Su, President and CEO of , as chairman of the board, and John E. Caldwell as chief independent director. Former Xilinx board members Jon Olson and Elizabeth Vanderslice also joined the AMD board while acquiring Xilinx.
○ Outlook for the next quarter
AMD expects revenue in the second quarter of 2022 to be approximately US$6.5 billion, up and down US$200 million, up and down, up about 69% year-on-year and up about 10% month-on-month. is expected to grow year-on-year, driven by Xilinx’s increase and higher server, semi-customization and customer revenue. The forecast month-on-month growth is driven mainly by Xilinx and higher server revenues. AMD expects non-GAAP gross margin to be approximately 54% in the second quarter of 2022.
AMD expects non-GAAP gross margin to be approximately 54% in 2022, up from the previous guidance of about 51%.
After acquiring Xilinx, AMD's product line has become more complete, especially in the data center capabilities, and we continue to be optimistic about AMD's one-stop chip provision capabilities in the era of Internet of Things, and data center chips are still the pillar of the company's current business.
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