But help is on the way: sales of chips for game consoles.
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The company’s second-quarter net profit largely reflected one-time gains, but AMD said it also posted an operating profit a quarter sooner than expected.
Q2 2016, Q1 2016 and Q2 2015 were 13-week fiscal quarters. Revenue rose 9% to $1.03 billion.
The AMD division that includes semi-custom chips grew 59 percent to $592 million compared to the first quarter and 5 percent compared to the same quarter a year ago. At present stage, NVIDIA accounts for the leader of the GPU market with approximately 80 percent market share, whereas the remaining 20 percent belongs to AMD.
Gross margin stands at 31 per cent, down one percentage point sequentially “due primarily to a higher mix of semi-custom SoC sales”. The year-over-year decrease was primarily driven by lower desktop GPU ASP. During a recent launch presentation of Polaris, AMD put the the Radeon RX 460 to test against an R7 260X at same settings on 1080p resolution.
Professional and casual gamers alike are also celebrating the launch, with AMD-sponsored eSports teams such as Fnatic and Evil Geniuses hailing the Radeon RX 480 as a triumph for PC gamers everywhere, and prominent video reviewers worldwide affirming the exceptional value of the graphics card across a wide range of games, the statement added.
It’s been a long wait for Zen since it was first announced in mid-2015.
– Premium technology engineered for unprecedented performance in its class – The Radeon RX 480 8GB card features the most advanced graphics and gaming technologies ever seen in a GPU at $239, delivering the best performance/$ in its class.
AMD extended its leadership in gaming as Microsoft announced two new AMD-powered game consoles to its Xbox familythat enable the next generation of immersive gaming experiences through support for new technologies like HDR, 4K and high fidelity VR.
Project Scorpio, along with 2 other undisclosed deals, is expected to generate almost $1.5 billion for AMD over the next three to four years.
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For the current quarter, AMD projected a 15% to 21% revenue increase from the second quarter, compared with the 18% growth projected by analysts surveyed by Thomson Reuters.
