AMD stayed 100% in the black in Q3 2017

AMD has posted its third-quarter financials, and the company ended up in the black across the board. The company took in revenue of $1.64 billion, up 26% year-over-year. The company's third-quarter operating income of $126 million stands in stark contrast to the $293 million operating loss the company posted a year ago, and the company's net income of $71 million finishes off a fully profitable quarter. Earnings per share rang in at $0.07, compared to a $0.50 loss per share a year ago, and gross margin increased 30 points year-over-year to 35%.

  Q3 2017 Q3 2016 Change from Q3 2016
Revenue $1.64 billion $1.31 billion up 26%
Operating income $126 million -$293 million
Net income $71 million -$406 million
Gross margin 35% 5% up 30 points

The Computing and Graphics division drove the rosy results with $819 million in revenue, up 74% year-on-year, thanks to what the company calls strong sales of Radeon graphics cards and Ryzen desktop CPUs. The Ryzen tide lifted average selling prices of the company's client products, and the ASP of Radeon graphics products also "increased significantly" year-over-year. The division took in $70 million in operating income, versus a net loss of $66 million a year ago.

The Enterprise, Embedded, and Semi-Custom division brought in $824 million, about the same as this time last year. The company says that Epyc processor sales and IP licensing revenue offset a decrease in semi-custom SoC sales. The division brought in operating income of $84 million, down from $136 million a year ago. AMD blames "higher costs partially offset by the net benefit of IP related items" for the change. In its All Other bucket, the company posted a $28 million operating loss, reined in from a $363 million operating loss a year ago.

For the fourth quarter of 2017, AMD expects revenue to decrease 15% sequentially, plus or minus 3%. The company says that if it hits the midpoint of this guidance, revenue would still be up about 26% year-on-year in the fourth quarter.

Comments closed
    • moose17145
    • 2 years ago

    Good for AMD! I am happy to see them turning a profit again! Hopefully that can continue this.

    I do feel that their Ryzen systems offer good value and performance, and their ThreadRipper and Epyc platforms I am particularly impressed with.

    And as much as people believe that the only reason their graphics department turned a profit is because of the miners, I would argue that more than likely it has more to do with the enterprise market scooping up as many Vega based cards as they can for their compute performance which command a much nicer profit margin. The card may be viewed as mediocre as far as it’s gaming prowess goes, but it is quite a good card when it comes to compute.

    • ronch
    • 2 years ago

    Intel net earnings = $4.5 billion
    AMD net earnings = $71 million

    Think about that for a nanosecond.

    • titan
    • 2 years ago

    > | Gross margin | 35% |5% | up 30% |

    Correctly states 30 point increase in first paragraph, incorrectly states 30% up in table.

    Either up 30 points, or up 700%.

      • Jeff Kampman
      • 2 years ago

      You’re right. Fixed.

    • USAFTW
    • 2 years ago

    Nice to see that altcoin mining and sellings every GPU they can make as well as having the best CPUs on the market for almost a decade is keeping AMD in the black.
    On second thought, how can you have gross margins so low? I don’t know how much Ryzen costs to make, but selling a sub-200mm2 CPU for more than 300$ should be very profitable.
    What if the demand from miners stop? Their GPUs kinda suck these days. Will that drag them down into the red?
    I was honestly expecting them to do much better in these conditions.

      • Antimatter
      • 2 years ago

      It’s the low margin console chips that lowers the total gross margin.

    • Alexko
    • 2 years ago

    Why do they expect to take in less in Q4? That’s usually the strongest quarter.

      • juzz86
      • 2 years ago

      I thought the same thing.

      No release hype wave to ride?

      ETH difficulty increase?

      More sales expected?

      Dunno.

        • Pancake
        • 2 years ago

        Possibly Coffee Lake putting the brakes on Ryzen sales? Together with GPU prices normalising. AMD still have two good cards to play – mobile Ryzen and Ryzen with IGP. But they better get those out soon.

          • juzz86
          • 2 years ago

          That’s also a solid guess mate – probably on the money.

          I’m very much looking forward to seeing the next APU. It might make speccing out new family rigs a bit easier, cheaper and hopefully smaller!

          • watzupken
          • 2 years ago

          You are likely right about both points, but the one that will hit AMD the hardest is likely their less than successful GPU. If the mining craze tapers off or stabilizes, I seriously don’t believe AMD cards is in super high demand with gamers as oppose to Nvidia’s graphic solution.

          CPU wise, Intel’s counter with Coffee Lake certainly will impact demand on Ryzen chips. AMD’s only likely counter is to reduce price based on their historical trend.

      • ronch
      • 2 years ago

      Um, because folks get their bonuses and hence have more money to choose Intel? Er..

      • K-L-Waster
      • 2 years ago

      Q4 is strong for retail.

      For component manufacturers, it’s earlier, more like Q3 — they need to build and sell the parts for the AIB manufacturers and system builders months ahead of the holiday season so they can be in stock in time for gift buying.

      • anubis44
      • 2 years ago

      Q3 is AMD’s strongest quarter, because it’s in June, July and August (and even into September) that they ship/sell the CPUs/GPUs to the companies that will THEN put them into computers/laptops/graphics cards for Q4 (October, November and December) for Christmas sales. This is absolutely normal, not problematic.

      In addition, the sellers got it wrong when they were ‘disappointed’ by the lack of Epyc server CPU sales, because server CPU validation takes MUCH longer than desktop/laptop CPU validation. Many financial ‘analysts’ didn’t get that memo, and were out to lunch on this count, like Jim Cramer and this guy:

      [url<]https://seekingalpha.com/article/4116494-amd-solid-q3-results-selloff-justified[/url<] He says right in his article: "As the new family of EPYC processors was launched in the end of June, the sales of the new chips should have contributed to AMD's results, and, therefore, lack of growth in the segment is especially disappointing." Duh. HP and Dell, etc., LOVE Epyc, and they've already started ordering large quantities of them, but those chip sales DID NOT APPEAR in AMD's Q3 earnings... yet. They will start to show up in Q4 earnings, however, which will probably lead to another earnings beat for AMD.

        • Alexko
        • 2 years ago

        Got it, thanks!

    • SomeOtherGeek
    • 2 years ago

    Good job, AMD. But I’m still not buying your stock.

    • ronch
    • 2 years ago

    Come on, guys, let’s all buy Ryzen! AMD did it on a budget that’s less than Intel’s quarterly Coffee [s<]Lake[/s<] budget and they deserve our support!!

      • K-L-Waster
      • 2 years ago

      Sorry, I buy equipment based on how it fits my needs and budget, not as a doggy treat for making interwebz posterz happy.

        • Anonymous Coward
        • 2 years ago

        Its understandable to purchase according to your needs, but your attitude is stupid.

          • K-L-Waster
          • 2 years ago

          What’s stupid about disconnecting purchasing decisions from concepts like “deserve our support”?

          They are equipment manufacturers. I would suggest that getting emotionally attached to them is “stupid” (or at least misguided).

            • Anonymous Coward
            • 2 years ago

            There is nothing emotional about supporting competition. Competition is better than monopoly. Of course those companies don’t deserve a damned thing they don’t earn. [i<]We as consumers deserve competition and should not settle for monopolies.[/i<]

            • Redocbew
            • 2 years ago

            Fortunately there are people who would spend their money on principle in this regard so that I don’t have to.

            • Anonymous Coward
            • 2 years ago

            Indeed! Thats a reasonable perspective to have.

            People who do not feel the need to make sacrifices in the common good should at least not sneer at those who do. People of all political persuasions can find someone they identify with who risks or sacrifices income, time, or their very life in an attempt to improve society. From humanitarian workers to missionaries to soldiers, police … teachers … it continues down to purchasing decisions like (relevant to the US in many time periods) buying a Chevy or (worldwide in many time periods) buying an AMD.

            People who ridicule these actions while also benefiting from them have an internal issue to resolve.

            • K-L-Waster
            • 2 years ago

            [quote<]People who ridicule these actions while also benefiting from them have an internal issue to resolve.[/quote<] People who equate buying AMD with humanitarian workers and soldiers have serious perspective issues.

            • Anonymous Coward
            • 2 years ago

            I did not equate, but I did group them on the same side of the spectrum.

            Our society is made up of the actions everyone makes every day, both big and small. We can not pretend that only big actions matter. Its rather the small actions that form the fiber of our society, and the failure of numerous people here to see that can give us an indication of why Western society is rotting.

            The Chinese are taking over world leadership, FFS.

            Yes we are free to concern ourselves with only our own lives, within the limits of law, as it should be. But all forms of self-sacrifice should be spared ridicule so much as possible. I assure you, the perspective issues are in your head here. You and several others, judging by the votes.

            Edit: specified ‘Western’.

            • K-L-Waster
            • 2 years ago

            Yeeeahhhh… you’re the one who’s dragging it into R&P territory.

            • Anonymous Coward
            • 2 years ago

            I’m defending morals on the internet. Doom.

        • JustAnEngineer
        • 2 years ago

        +3 Buy what is the best value for your uses. I’m looking for a Core i7-8700K for my next gaming PC.

          • K-L-Waster
          • 2 years ago

          Exactly.

          I’m up in the air between a 8700K and soldiering on with my OC’d Haswell. Edging towards door number 2 at the mo.

        • ronch
        • 2 years ago

        Well my friend, I’m not suggesting you go be a nice doggy and buy the FX. This is Ryzen and it actually offers more bang for your buckazoid and it should fulfill your needs quite nicely. So yeah, you were saying…?

          • Redocbew
          • 2 years ago

          The nice thing about having AMDisDEC around is it made you look moderate.

          • K-L-Waster
          • 2 years ago

          And what do you know about my needs?

          <After writing that I feel I should clarify “computing needs…” started to sound a bit creepy there…./>

          EDIT: and in any case, if AMD actually has compelling products for a change, they don’t really *need* the whole “buy from them ‘cus they deserve it” evangelizing, do they?

      • MOSFET
      • 2 years ago

      I root for sports teams, not businesses.

        • Anonymous Coward
        • 2 years ago

        Lets not fool ourselves, the big sports teams are businesses.

          • Klimax
          • 2 years ago

          Often with out-of-country capital…

        • Meadows
        • 2 years ago

        What’s the difference?

    • Khali
    • 2 years ago

    Interesting. I guess none of those evil “One time charges” reared its ugly head this quarter. But, they still have a mountain of debt to service sooner or later. Nice to see AMD in the black for a change but they need to do it for a whole year or even two before I will be convinced they are on the way back.

    We need AMD around to give Intel some competition. Competition means lower prices and more products to choose from. So, lets hope they can pull it off after years of downward spiraling the drain.

      • ronch
      • 2 years ago

      If I had a dollar every time someone said we need AMD for the sake of competition…

    • Chrispy_
    • 2 years ago

    I think Navi will compete with Volta, but Vega will have to hold the fort between late this year/early 2018 until Navi is out, which is going to be difficult if there’s a price war. Given that Vega was at least a year late, I’m not reassured that AMD will get Navi out in August 2018 as per their announcement, so the dGPU sector is not something I’m optimistic about for AMD.

    What is going to rock the boat will be a Raven Ridge laptop part that genuinely rivals an i5 quad core in single/multi-threaded performance AND perf/Watt – BUT also has an adequate IGP to deliver 1080p30 or 720p60 gaming in the latest AAA titles.

      • freebird
      • 2 years ago

      Navi will probably follow the Vega release line: Pro and Frontier Editions first, with consumer versions following, which means no Navi for consumers until probably beginning of 2019.

    • Crayon Shin Chan
    • 2 years ago

    Now THAT’s news!

    • Phartindust
    • 2 years ago

    Glad to see the good results. Now bring on Raven Ridge and keep it going!

    • watzupken
    • 2 years ago

    I feel where AMD is making money is from selling their Thread Ripper and EPYC. Retail market selling Ryzen usually don’t account for much of profit and is a numbers game.
    Graphic department wise, I feel AMD is doing well mainly because of the ongoing mining craze resulting in inflated GPU prices.
    Overall, it is good to see the “dry season” is over for AMD and they have revived the desktop CPU market with their aggressively priced and high core count CPU. The lack of competition over the years have caused it to be stagnant with Intel sitting there just counting money and giving their consumers an incrementally better product year on year. To be honest, I don’t feel Intel processors and graphics have improved at all since Sky Lake apart from improvement in clockspeed. Coffee Lake is still fundamentally the same Sky Lake processor with 2 additional cores.

      • Veerappan
      • 2 years ago

      Thread Ripper and EPYC are low-volume parts, though, while Ryzen is selling many more units. As long as AMD is making money on the Ryzen parts (which I have to believe they are), then Ryzen could very well be responsible for a good portion of those profits.

      As to the Mining craze. Yes, AMD is selling pretty much every chip they can make, which is definitely helping their bottom line, but at the same time I believe that most of the inflated selling prices of the GPUs is getting pocketed by the retailers at this point. AMD may have slightly raised their chip prices, but not nearly as much as retail prices have risen.

      And with regards to Intel’s CPUs… you’re right. They’ve mostly stagnated over the years. Other than Coffee Lake bumping core counts, adding 512-bit AVX units, and reducing power consumption, there really isn’t much to recommend getting a new chip over the haswell in my work laptop. We all know that Intel has been basically sitting on their haunches waiting for some real competition to inspire them again…

        • Waco
        • 2 years ago

        EPYC isn’t low-volume, though, they’re just not in the wild enough to be fully available.

          • Veerappan
          • 2 years ago

          Fair point. I’d still say that for the moment, they’re lower-volume than Ryzen, but that will hopefully change.

          Threadripper will probably always be lower-volume than the mainstream Ryzen chips, but hopefully EPYC sales take off.

            • Anonymous Coward
            • 2 years ago

            Its funny that for AMD the “low volume” parts are the “high volume” parts in a different package. Smooth move for an underdog.

        • psuedonymous
        • 2 years ago

        [quote<]Thread Ripper and EPYC are low-volume parts, though, while Ryzen is selling many more units. [/quote<]AMD have been targeting the high-volume-low-margin market for the last decade or so, and it hasn't been working out well for them in terms of actual profit. That's also a big danger for their console contracts: those will have guaranteed price drops locked into them and razor thin margins from the start, and if AMD cannot get their production costs down in time (previously through process streamlining and periodic die shrinks, now more down to optimisation with maybe a minor die shrink during active production if you're lucky) then they can end up selling chips at a loss to fulfil their contractual obligations.

      • R-Type
      • 2 years ago

      I’ll go a few steps further and claim that Intel hasn’t really built a true architectural leap since Nehalem. Tick-tock allowed them to tweak the design and add a few instructional sets incrementally, but we really haven’t had a radical architectural clean sheet design for about 7 years. Intel always gets lazy with no competition.

    • Tristan
    • 2 years ago

    That’s wery small benefit, that AMD have no losses. Ryzen is much weaker than expected, should being 10X stronger profit, especially after three quarters of sale, and most models on sales.

    • ColeLT1
    • 2 years ago

    Premarket, AMD is down 10% this morning, didn’t expect that.

      • chuckula
      • 2 years ago

      It’s not because they reported a profit.

      It’s because they provided a pretty low revenue target for next quarter. The stock market’s reaction to quarterly reports where the results are pretty much in line with expectations (and they were here, no huge surprises positive or negative) is much more about the future projected earnings than it is a report card about the prior quarter .

        • ColeLT1
        • 2 years ago

        Ah, glazed over early in the morning, missed the “decrease” of 15%.

          • Anonymous Coward
          • 2 years ago

          That still represents approximately +25% year to year, so I guess its not all bad.

          I wonder why it should be so weak. Given the products lineup year to year, +25% isn’t a lot. Do they expect a lot of price pressure? Perhaps they expect GPU prices to cool?

          I have to conclude they do not expect to ship a vast pile of server processors next quarter (which is too bad, I was hoping that AWS would offer something from AMD since they are basically a whole year late with their *lake-based c5 instances, thats gotta be irritating).

            • K-L-Waster
            • 2 years ago

            Keep in mind manufacturing lead time. For AMD, Intel, and NVidia, they are just finishing the Christmas rush and getting chips into the pipeline. The AIB manufacturers and system integrators won’t be ordering as much between now and late January.

      • watzupken
      • 2 years ago

      I think with Intel hitting back, it is not surprising that they will not be making as much profit the last 2 quarters since their only counter move is to lower prices until Ryzen refresh is released in 2018. Considering that AMD have been very aggressive with pricing, they don’t make as much as Intel selling per chip.

    • Welch
    • 2 years ago

    So happy to see this and happy I bought a bunch of stock when it was sub $3. It feels good to be right even when people were saying it was going to go under.

    Still need more time to tell but my predictions we’re dead on. I said before year end it would be at or above $15. Looking good to meet that. Thinking we may see over $16 if they have a positive holiday season.

      • w76
      • 2 years ago

      I don’t know, GE reported an absolutely terrible quarter, it tanked on the initial release, if I recall over 10%, and then went positive for the day. The entire stock market has diverged from reality (easy to see in a lot of metrics), it’s easy for weak companies to soar on a little hype or hope when you have central banks like the Swiss actively buying billions in stocks to suppress their own currency and/or interest rates.

      My long term (5 year) estimate of where AMD ends up is still $0, this was a best-case-scenario quarter and Intel has their 6-core-counter-punch heading in to the marketplace. I don’t see how they survive their debt maturities coming up in a few years, except perhaps a buyout (either partial or someone that just wants the graphics division, whose numbers I wish they’d break out).

      Still saying the smartest thing for everyone including Intel would be for Intel to raise prices and give AMD breathing room, but they don’t seem to be that clever.

      • PixelArmy
      • 2 years ago

      Right about bankruptcy, kinda wrong about stocks… Since the last time they were $3-ish, [url=https://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chfdeh=0&chdet=1509110622470&chddm=178687&chls=IntervalBasedLine&cmpto=NASDAQ:NVDA&cmptdms=0&q=NASDAQ:AMD&ntsp=0&ei=JDPzWdD5MMe0mAHS-7W4Ag<]an [i<]obvious[/i<] alternative, has done better while also paying dividends...[/url<] Still the kind of "mistake" we'd all like to have (and subject to exact dates).

    • ronch
    • 2 years ago

    Can’t wait to see what the next iteration of Ryzen does. I expect improvements to the core to become less and less as time goes on so being the first revision of Ryzen, the next iteration should bring in significant performance gains, unless Ryzen is proving to be close to its fullest potential. Being a very wide core like Intel’s perpetual core though, I think Ryzen should eventually reach IPC parity with Intel, at least in terms of integer throughout. Floating Point is still a step behind Intel though, even on paper, because Intel can do 2 x 512-bit AVX operations in one go while AMD has 4 x 128-bit units. AMD has more flexibility though, I gather. Still, AMD’s FPU is nothing to sneeze at.

      • the
      • 2 years ago

      AMD has already made passing reference to some low hanging fruit for optimization. I would suspect that much of that is in the cache hierarchy between CCX. I can see AMD widening the 128 bit wide execution units to full 256 bit wide but there is certainly a power consumption concern there. I would predict that AVX-512 foundation would be added to the next iteration of Zen but I highly doubt that there will be a native 512 bit wide execution unit. AMD will crack the 512 instructions into several micro-ops that work on 128 bit or 256 bit chunks. Maintaining ISA parity is important even if the initial performance gains will be marginal.

      The problem for Intel is that their current three step strategy isn’t expecting an major IPC gain until Ice Lake. While it was always expected that Zen would lose the IPC battle against Sky Lake/Kaby Lake, Zen 2 is projected by AMD* to be more in-line. Considering the delays with Cannon Lake and subsequently Ice Lake, Zen 2’s competitor at launch may simply be Coffee Lake. That may will be a very interesting comparison.

      *insert grains of salt here

      • Anonymous Coward
      • 2 years ago

      Careful what you wish for, they could easily cock the whole thing up. I’d like to see them pay as much attention to reducing power usage as they pay to increasing performance.

    • NTMBK
    • 2 years ago

    Cue the AC/DC!

      • Srsly_Bro
      • 2 years ago

      Don’t ruin it…

    • Unknown-Error
    • 2 years ago

    If EPYC adoption is a success then things should remain stable. But unlike your average consumer, big enterprises will take longer to adopt systems like EPYC. Even 1% – 2% gain in the enterprise market would give AMD a lot of income due to those being very high margin areas.

    Any confirmation of a big company adopting EPYC? This will be critical. Fingers-crossed.

      • NoOne ButMe
      • 2 years ago

      Baidu probably is. Might be going nearly-all AMD actually. Given they’re the only company AMD talked about both for CPUs and GPUs in their earnings call.

      Amazon/Baidu for Instinct GPUs
      Azure(Microsoft)/Baudi/Tencent for EPYC CPUs.

      AMD appears also to be really ramping EPYC sales this quarter… wonder how much of the revenue change compared to this quarter is due to the due dates of payments from these few companies to AMD.

    • Anonymous Coward
    • 2 years ago

    What kind of financial performance does AMD need to deal with their debt in the coming years?

      • w76
      • 2 years ago

      That’s tricky; Amazon went most of its history losing money, that didn’t stop their stock from rising or bonds from being sold, because they were growing rapidly and were clearly a market leader.

      The bar for AMD might be a little higher, because no one pretends AMD is a market leader. They probably need to stay profitable in terms of net income and keep gaining market share. They’ve got a lot of ground to make up just to be back to the size they were when the debt was initially issued.

      They’re vulnerable to the bond market if rates rise, too. About $2.2 billion total, with 2019 and 2020 being the critical years. Due to covenants on the 2020 debt/bank loan, really, January 1 2019 we’ll either get a quiet announcement of debt refinancing or an announcement of default.

      • flip-mode
      • 2 years ago

      Staying in the black.

    • ronch
    • 2 years ago

    These numbers are no doubt a result of Ryzen being so strong, but what worries me is how Intel is responding. Just look at how TR’s latest Intel CPU review shows that Intel is becoming more aggressive in light of the Ryzen challenge. I really hope Ryzen opens the floodgates in 2018.

    Edit – downvotes for telling it like it is. Kudos to whoever downvoted this post. Good job!!

      • flip-mode
      • 2 years ago

      I suggest you do not let it worry you. This is what competition looks like. AMD needs to work hard and work smart to keep up.

        • ronch
        • 2 years ago

        Yeah but it’s an oligopoly between an 800-pound gorilla and a cute, cuddly guinea pig.

      • trieste1s
      • 2 years ago

      What is it about you and many other TRers who get so hot and bothered about receiving down votes?

        • Chrispy_
        • 2 years ago

        I have no idea;

        I don’t get paid for upvotes and I’m fully aware that I’m an opinionated, sarcastic, grumpy old sod. I’m actually amazed that some of my grumpiest, least-rational rants get voted up, and simply quoting facts from linked sources can prove unpopular. If that isn’t enough to make you stop worrying about meaningless internet points, I don’t know what is….

        • ronch
        • 2 years ago

        Nah, I just think some folks here are nuts. Their downvotes tell me they’re not too happy with what the post contains, even if it just tells it like it is.

    • just brew it!
    • 2 years ago

    Hopefully Q4 will continue the trend. Intel isn’t sitting still though.

      • JustAnEngineer
      • 2 years ago

      Once the paper-launched Core i7-8700K becomes a reality, Intel’s response to Ryzen will re-assert their performance lead.

      Had AMD done a paper launch like Intel’s, Chuckula would posted about it at least a hundred times by now.

        • Anonymous Coward
        • 2 years ago

        I haven’t followed it, but was that really a paper launch? How about the other 6-core parts?

          • the
          • 2 years ago

          The i5 is in seemingly good supply. Not sure if it is just demand for why I haven’t seen an i7-8700K at Microcenter yet.

            • Anonymous Coward
            • 2 years ago

            What reason could Intel have for not meeting demand at the high end? I imagine they have fine yields, and the die is the same. Or maybe they like that feeling of scarcity.

            • Krogoth
            • 2 years ago

            It is because rushed Coffee Lake to the market and didn’t bother to build up stock for a public release. The four-core SKUs are actually Kaby Lake repackaged into “Socket 1151v2” which is why they haven’t suffer from supply issues. Coffee Lake is going to be hard to come by until Q1 2018.

        • chuckula
        • 2 years ago

        Nice fact-free personal attack there.

        And the 8700K was not a paper launch, it’s just that the production went to OEMs first, which makes sense given that we are entering the holiday shopping season. A paper launch means the product is literally not available, and that’s plainly factually wrong just like saying that Vega was a “paper launch” (and I never once said that) even though there was a supply of cards available with “vega packs”.

        Incidentally, if you want to order an 8700K from Newegg you can have it shipped today, and these pre-built systems were available within a couple of days of launch. Here’s an incomplete list of systems that are in-stock right now:

        [url<]https://www.newegg.com/Product/Product.aspx?Item=9SIA24G6HB2625&cm_re=8700K-_-1VK-00C4-00044-_-Product[/url<] [url<]https://www.newegg.com/Product/Product.aspx?Item=9SIABFS6DU3595&cm_re=8700K-_-1VK-01JD-00JV4-_-Product[/url<] [url<]https://www.newegg.com/Product/Product.aspx?Item=9SIABFS6DM7375&cm_re=8700K-_-1VK-01JD-00JS5-_-Product[/url<] [url<]https://www.newegg.com/Product/Product.aspx?Item=9SIA24G6J96308&cm_re=8700K-_-1VK-00C4-00048-_-Product[/url<] [url<]https://www.newegg.com/Product/Product.aspx?Item=N82E16883227787&cm_re=8700K-_-83-227-787-_-Product[/url<] [url<]https://www.newegg.com/Product/Product.aspx?Item=N82E16883227781&cm_re=8700K-_-83-227-781-_-Product[/url<]

          • derFunkenstein
          • 2 years ago

          They all say “In stock” but the iBuyPower ones also say “allow 7-10 days to ship”, sort of like they haven’t actually been built yet.

          Interesting that you can’t just buy an 8700K at retail by itself, isn’t it?

            • chuckula
            • 2 years ago

            [quote<]Interesting that you can't just buy an 8700K at retail by itself, isn't it? [/quote<] It's a distribution strategy more than anything else. Once again, the highest-end parts launched in October, which is the start of the holiday shopping season. Intel probably had a long line of these OEMS clamoring for stock of its highest-end Coffee Lake parts and obliged. Calling a product that you can buy today at retail a "paper launch" is flatly dishonest and shows some real ignorance on JAEs part.

            • cygnus1
            • 2 years ago

            They’re probably not fully assembled. I would imagine these are assembled on demand depending on the version that’s ordered. Still doesn’t mean they don’t have the 8700K’s ready to go in those to-be-assembled systems.

            • derFunkenstein
            • 2 years ago

            No, it doesn’t, and I never intended to imply that it did. Only that they don’t have them on the shelf ready to go.

            • cygnus1
            • 2 years ago

            Yeah, I was figuring that’s what you meant. Makes sense to me though. I bet they’re not nearly as high volume as a Dell or HP, so on demand builds are probably just more efficient from a stock/cost perspective until demand is high enough to justify pre-building some configs.

        • Krogoth
        • 2 years ago

        It is not a paper launch but a rushed launch. You can get Coffee Lake but expect to pay through the nose for it until next year.

          • JustAnEngineer
          • 2 years ago

          You can buy a Coffee Lake processor, but you cannot buy a Core i7-8700K.

        • End User
        • 2 years ago

        Newegg reviews indicate that consumers have them in their hands:

        [url<]https://www.newegg.ca/Product/Product.aspx?Item=N82E16819117827&cm_re=8700k-_-19-117-827-_-Product[/url<]

          • JustAnEngineer
          • 2 years ago

          So it appears. Newegg shows 12 verified owners who set up their browsers to auto-refresh to check for stock every 10 seconds. My lack of persistence must be why I never received an in-stock notification from Newegg for the Core i7-8700K and why it doesn’t have any price history at PCpartpicker.

    • NovusBogus
    • 2 years ago

    1. Produce something that people might actually want to buy (Zen/TR and miner cards)
    2. [s<]???[/s<] Said people actually buy the product 3. Profit!

      • Srsly_Bro
      • 2 years ago

      If a product isn’t profitable, it won’t matter if people buy it. I’m not saying this is the case here as Ryzen and derivatives seem profitable. Vega on the other hand likely isn’t very profitable, if at all.

      It really all about the benjamins.

        • Klimax
        • 2 years ago

        Note: It cannot be “just” profitable, it needs to be sufficiently profitable to pay R&D. And margins seems to be still bit low for that. (Both CPU and GPU divisions)

    • Krogoth
    • 2 years ago

    The growth is going to get a bit bigger once Epyc family picks up momentum in SMB/enterprise market for those who are up for an upgrade.

    It is hard to say if Ryzen Mobile will gain any serious traction in the mainstream market though. Intel has advantage in IPC, power efficiency and supply for their lower-tier SKUs.

    • Waco
    • 2 years ago

    Go AMD! It’s great to see competition in the market.

    • blastdoor
    • 2 years ago

    Whew! Thank goodness!

    Hang in there AMD!

      • chuckula
      • 2 years ago

      YOU CAN DO IT!

    • nanoflower
    • 2 years ago

    As always people taking advantage of the good news to lock in those profits. Though it’s interesting they expect a drop going into what should be their best time of the year which is another reason to lock in any profits.

      • danielravennest
      • 2 years ago

      The larger system builders would have already ordered parts, to have them in time for holiday sales, which kick off in a few weeks. By the time individuals shop for stuff at retail, AMD already has their money.

    • Convert
    • 2 years ago

    When was the last time AMD was profitable like this?

      • shank15217
      • 2 years ago

      10 years ago.

        • caconym
        • 2 years ago

        Kicking myself for not buying a couple hundreds bucks of AMD when it was $2 just for fun … would’ve paid for a Threadripper and mobo by now.

          • DancinJack
          • 2 years ago

          It already dropped a few bucks in after-hours trading today. I expect it’ll drop some more over the next week or so. I wouldn’t kick yourself too hard. Plenty of other investments you should have made over AMD.

            • derFunkenstein
            • 2 years ago

            For instance I am kicking college Ben in the rear for not dropping a couple hundred on Apple in 1996-1997. 😆

            • just brew it!
            • 2 years ago

            A lot of developers my age are kicking ourselves for not applying for a job at Microsoft back in the ’80s. Could’ve probably retired by now.

            • UberGerbil
            • 2 years ago

            If you’d had a developer job at Microsoft in the 80s and stayed there for even just your initial options to vest (5 years) — and sat on them, rather than spending them* — there’s no “probably” in that sentence. You would’ve retired before the dotcom crash, unless you wanted to keep working.

            *there were some who took their options, went “oooh, free money” and bought a car. A car that, had they just kept the stock, would’ve been worth several houses a couple of years later. The “million dollar Camry” was a thing.

            • Cuhulin
            • 2 years ago

            OTOH, Microsoft’s current position was not that clear in the 1980’s, when WordPerfect and Lotus dominated the applications market, and companies like Quarterdeck were doing a better job than Microsoft in providing the multi-tasking windowed systems that the 386 permitted.

            Ya makes your choices and takes your chances.

      • albundy
      • 2 years ago

      when it actually released a cpu 10 years ago or so.

        • ronch
        • 2 years ago

        Oh I thought my FX box had a CPU in it.

      • DancinJack
      • 2 years ago

      Looks like 2013 Q3 was very slightly profitable. (and a few others thrown in there) But AMD hasn’t made real money in a good decade.

      • ronch
      • 2 years ago

      Back when AMD caught Intel off guard. Those would be when K7 launched and AMD64 landed. Jerry rocks. Then Hector the Hexapod thought Barcelona was enough and Intel would never come up with anything better, and he also OK’d the Bulldozer project, thinking everyone would be running a million threads by 2011, and everything just fell apart.

      • Anonymous Coward
      • 2 years ago

      I’d like to see a nice graph representing AMD’s fortunes along with a few relevant events.

    • Leader952
    • 2 years ago

    Are these numbers GAAP or NON-GAPP. AMD likes to play it loose with their financials by touting the NON-GAPP numbers.

      • Jeff Kampman
      • 2 years ago

      I never report anything but GAAP numbers.

        • NoOne ButMe
        • 2 years ago

        It might be a good idea to note this in future articles about quarterly income. I’m sure someone else will ask the same question as Leader952 on the next one.

        • Welch
        • 2 years ago

        Smart man says my wife (accountant).

        • TravelMug
        • 2 years ago

        Visit GAAPing.com for all your accountant pr0n!

        • Leader952
        • 2 years ago

        Yet nowhere in the article is that stated.

      • shank15217
      • 2 years ago

      AMD provides both, like all companies are required to do.

        • chuckula
        • 2 years ago

        There’s no requirement to report non-GAAP numbers and those numbers aren’t even made up in a consistent manner between companies (hence the [b<]non[/b<]-Generally Accepted Accounting Practices part). For a public company the SEC requires GAAP and non-GAAP is optional (although there are still regulations that prevent companies from outright lying or doing egregious book-cooking in the non-GAAP numbers).

          • BobbinThreadbare
          • 2 years ago

          GAAP has plenty of funny business itself. Just look at how they are allowed to handle currency valuations.

      • Srsly_Bro
      • 2 years ago

      DONT MIND THE GAAP.

    • shank15217
    • 2 years ago

    Hooray for mining!

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