AMD’s EESC Segment Looks Beyond Game Console For Growth Driver

EESC Segment

Advanced Micro Devices’ (NASDAQ:AMD) year-over-year revenue saw a healthy increase, driven by a surge in ASP (average selling price) of Computing and Graphics products and patent licensing revenues.

But, growth in the EESC (Enterprise, Embedded, and Semi-Custom) segment was stagnant. This segment offers semi-custom chips used in game consoles, server chips, and embedded chips.

Between 2012 and 2016, AMD’s revenues fell more than 20% as it lowest significant market share within the PC sector, as well as in the server CPU and GPU space.

In fiscal 3Q17, EESC revenues were flat on a YoY basis. Revenues rose 46%, to $825 million- driven by seasonal demand for semi-custom chips, growth in server chips, and the addition of new patent licensing deal.

EESC’s operating incoming fell 38% YoY to $84 million due to higher costs of developing server chips.

Further, AMD is also monetizing its intellectual property to boost earnings. The company is in talks with several companies for a licensing deal, and it recently completed one deal.

Featured Image: depositphotos/alexeynovikov

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