AMD revenues up 23% thanks to record SoC, GPU, APU sales

AMD has posted their Q3 earnings, reporting revenues of $1.3 billion for the quarter, beating analysts expectations of $1.21 billion for the three-month period.

AMD is riding record semi-custom SoC designs that made it into Microsoft's new Xbox One S, as well as their upcoming Xbox Scorpio console, and Sony's new PS4 and PS4 Pro consoles. The company also reported higher GPU and mobile APU sales, but were partially offset by client desktop processor and chipset sales.

Lisa Su, AMD's president and CEO said in a statement: "Our third quarter financial results highlight the progress we are making across our business. We now expect to deliver higher 2016 annual revenue based on stronger demand for AMD semi-custom solutions and Polaris GPUs. This positions us well to accelerate our growth in 2017 as we introduce new high-performance computing and graphics products".

AMD made $472 million in revenue from its Computing and Graphics business, up 9% sequentially and 11% from Q3 2015. These increases were thanks to increased GPU sales, but were offset by decreased sales of client desktop processors and chipsets, while the year-over-year increase driven through increased sales of client mobile processors. AMD's Enterprise, Embedded and Semi-Custom business had revenues of $835 million, a new record with an increase of 41% sequentially, and 31% year-over-year, thanks to AMD's continued semi-custom design wins.

Looking to the future, AMD expects a slower Q4 with revenues expected to decrease 18% sequentially, plus or minus 3% reports ZDNet.