Amd Shares Its Impressive 2019 Finances

AMD has released its finances from last year, revealing strong revenue growth in the fourth quarter and further growth in 2020. In response to this, AMD's share value has declined as AMD has failed to meet some of the predictions made by analysts in their guide for 2020.

AMD closes 2019 with strong revenue and projects margin growth of 45% in 2020

While Wall Street is 'not impressed' with AMD, hardware enthusiasts should be, as AMD plans to deliver 28-30% revenue growth in 2020. How will you achieve this growth? That's right, increasing hardware sales. How will those sales be achieved? With a strong offer of products.

For starters, in the fourth quarter of 2019 AMD earned $ 2, 127 million in revenue, representing annual earnings of 50% and quarterly earnings of 18%. AMD's gross margin has also increased from 38% in the fourth quarter of 2018 to 45% in the fourth quarter of 2019, revealing that the company has increased its gross revenue and increased its profit margins.

Compared to the third quarter of 2019, AMD's operating income has increased 87%, giving AMD more money to share with its investors and more money to focus on R&D.

In 2019, the gross margin increased by 15%, with an increase of 4 percentage points from 39% to 43%. In 2020, AMD expects its gross margins to increase to approximately 45%, highlighting the company's higher profitability. With these higher margins, AMD's operating income in 2019 has increased by 33% compared to 2018. AMD's operating income is expected to further increase in 2020.

With a 28-30% increase in revenue and a two percentage point increase in gross margins, AMD's profits in 2020 are expected to be much higher than at any other time in the last decade.

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This growth will help the red company to invest in more products and boost its R&D spending, factors that can only be good for the CPU market to continue advancing.

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