Amd earnings are weak in Q1 2019, waiting for zen 2 and navi

AMD has released its earnings for the first quarter of 2019, and it's a bit mixed. Compared to last year, revenue has declined, mostly thanks to crypto's slump, while the company remains profitable with higher margins.

AMD's revenue is down 23% from the first quarter of last year

Compared to the first quarter of 2018, AMD's revenue is down 23%, reducing AMD's revenue from $ 1.65 billion to $ 1.27 billion in the first quarter of 2019. This is above of the figures expected by AMD for the first quarter, which were $ 1.25 billion.

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In the first quarter of 2019, AMD recorded a 5% increase in gross margin, thanks to the company's penetration of the data center market with Radeon Vega graphics cards and their EPYC processors.

AMD's lower revenues in the first quarter were primarily due to its computing and graphics segment. At the beginning of last year is where the cryptographic boom using graphics cards was located. The company sold large numbers of cards during that period, which also led to market shortages and outrageous price increases.

In AMD's Enterprise, Embedded and Semi-Custom segment, revenue decreased 17% year-over-year and 2% sequentially, primarily due to lower demand for semi-custom products. This change makes sense as we get closer to the end of the PS4 and Xbox One lifecycle.

While this first quarter may seem weak, the year for AMD will 'start' in the second quarter, when its new 7nm Ryzen and EPYC processors are on the street, in addition to the launch of its new Navi graphics cards.

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