Amd seeks to improve its margins for the sale of cpus and gpus to 50%

After its CPU and GPU performance has caught up or outperforms its rivals, what will AMD do next? Perhaps the most important point is to improve profitability. AMD has also set targets and expects future gross profit margin to reach more than 50%, which will continue to grow from the current 43% profit margin.

AMD seeks to improve its margins from the sale of CPUs and GPUs to 50%, currently it has 43%

In the last 50 years, AMD has not been profitable most of the time, so its financial situation is very bad and the debts that it entails are billions of dollars. After the situation in 2019 improved exponentially, AMD has paid off more than $ 1 billion of debt in one go. Currently, more than $ 500 million of debt remains, and the net cash flow is approximately $ 1 trillion.

If they want to make money, they must get a gross profit margin. This indicator is very important for semiconductor companies. AMD's gross profit margin is now 43%, which is more than the accepted pass of 40%, but it was only achieved last year. Performance in previous years was poor. At that time, the gross profit margin was only 30%, and it was impossible to make money from those figures.

AMD's business currently has a 43% gross margin for video game GPUs, a 43% gross margin for PC processors, and a 45% gross margin for data center processors, the highest among the top three companies.

Visit our guide on the best processors on the market

Going forward, AMD will also continue to increase the proportion of data center processors, and has previously stated that it will increase from 15% to 30%, which will obviously improve the overall gross profit margin.

Intel is said to have better profit margins, hovering around 60%, which is still much higher than 50%, AMD's key objective. We will keep you informed.

Mydrivers font