California-based semiconductor company, Advanced Micro Devices (AMD) Inc has reported a massive financial performance up to Q4 of year 2020. Drawing from a very solid performance from its products powering gaming consoles like PlayStation and Xbox, as well as powerful PCs and CPUs, the company has been recording massive returns from its investments last year. 
The full year earnings released by the company has shown that it was able to eclipse its year-on-year performance for each quarters of 2020. The figures are really impressive for the US chipmaker and indicate greater things ahead.
According to the financial report, the revenue for Q4 2020 was $3.2 billion, which was about 53% higher than the $2.1 billion realized in Q3. The profits also reflected a humongous rise from $170 million in Q3 to $1.78 billion in Q4, up 948%. The profit figures of the company, therefore, imply that it was able to ramp up its profits by up to one billion US dollars from October to December of 2020.
In comparison with the overall performance of the company in the previous year, its revenues went up 45% from $6.7 billion in 2019 to $9.76 billion in 2020, a difference of more than 3 billion US dollars. The year-on-year profit also witnessed a 630% climb from $341 million in 2019 to $2.49 billion in 2020.
It is noted that the profits, according to the company, included a Q4 income tax holiday of $1.30 billion associated with what it termed valuation allowance release.
This new revenue and profit performance, according to AMD is a new record, far exceeding the corporate expectation of the company, whose projections were a bit less enthusiastic due to a weakened demand consequent on the coronavirus pandemic.
It is noted that the company has several business concerns outside the production of consumer-grade chips, although more than 50% of the Q4 revenue came from the computing and graphics segment of the industry. The strong Q4 revenue was attributed to the powerful Ryzen processors’ sales.
However, the company continues to struggle to meet the demand for some of its premium products like the new Radeon 6000 cards, as well as the Radeon HD 7970 which had experienced some form of scarcity.
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(via)
