out there in the semiconductor space. Margins are thin, suppliers are demanding, consumers are finicky, and we're living in a world that constantly demands more power for less money. It's a story that's familiar to AMD, which has been in some state of turmoil for years it seems. Ups and downs at AMD are nothing out of the ordinary, but considering that the planet would be quite a boring place with only Intel in the space, we're happy to see AMD's third-quarter earnings.
Following Intel's own profitable Q3, AMD is citing a major boom in the semi-custom business as the key proponent for its Q3 net income figure of $48 million. Revenue for the quarter was pegged at $1.46 billion, an increase of 26% sequentially and 15% year-over-year. Operating income was set at $95 million, with net income at $48 million and earnings-per-share at $0.06.
“AMD returned to profitability and generated free cash flow in the third quarter as we continued to successfully execute the strategic transformation plan we outlined a year ago,” said Rory Read, AMD president and CEO. “We achieved 26 percent sequential revenue growth driven by our semi-custom business and remain committed to generating approximately 50 percent of revenue from high-growth markets over the next two years. Developing industry-leading technology remains at our core, and we are in the middle of a multi-year journey to redefine AMD as a leader across a more diverse set of growth markets.”
Best of all, AMD's expecting the growth to continue as the holiday season arrives. It's forecasting a 5% revenue rise in Q4. Who says it's not fun to root for the underdog?
In case you haven't noticed, it's pretty