This is the what will continue to be the main area of growth for AMD with its Epyc and Radeon Pro WX/Instinct server/HPC/AI portfolio of enterprie CPU and GPU products.

AMD will only need over the next 4 to 6 Business Quarters to continue to show Epyc and Professional GPU revenue increases and that’s directly what has increased AMD’s Gross Margins to 40% this quarter up 3% from Q2 2018. It will take a good while longer but AMD should see Epyc/Pro Compute/AI GPU sales markups/margins increasing and becoming a large enough source of overall revenues to make any consumer GPU revenue fluxuations less of an issue.

AMD’s stock volatility issues has made AMD a target of the speculators and as soon as AMD can grow its Epyc/Pro GPU market revenues and market share enough any consumer/coin mining or gaming revenue swings will impact AMD’s share price stability to a much lesser degree. AMD’s growth fundamentals are still good and it’s just that lately in the background of an overall Chip market share prices decline that’s affecting the entire market for processor makers that AMD’s share value declines look worse than normal. And the tariffs are not helping the PC market with higher tariffs to come in Jan 2016.

AMD’s enterprise embedded and semi-custom(EESC) accounting unit would have better results if the console sales figures declines where factored out and a better pitcure of just the Epyc/Pro GPU sales could be estimated. And it’s really the Epyc/Pro GPU sales that have kept the EESC business unit’s figures from declining fruther.

“While Q3 was a drop in revenue for the company, their current cost structure has still allowed them to make a tidy profit. The company continues to move forward with new products and new developments”

AMD is such a lean business operation that they have been able to turn a profit on Gross Margin of only 36% and Intel has gross margins in the low 60s%. But Intel is such a high overhead operation(Chip Fabs and Middle Management heavy) that if Intel’s gross margins dropped below 55% Intel would have to begin the painful cutting process in order to fruther reduce Intel’s very high business overhead. AMD is still primed to grow and be able to show some profits along the way to higher Gross Margins and revenue stability as Epyc/Pro GPU sales as AMD’s enterprise market share continues to grow larger.

With each Server Market share precentage point growth for AMD in a market that’s seeing rapid growth in its TAM size that’s been on the rapid increase(1) lately over the last 18 months, AMD can increase its quarterly gross revenues by the 100s of millions of dollars. So those single into double digit server market share figures via continued server market share increases can become a very large share of AMD’s most stable quarterly revenue growth figures and some very stable recurring revenues quarter to quarter also for more overall stability in share price valuation for AMD.

(1)

“The Server Market Booms, And It Could Last For A While”

https://www.nextplatform.com/2018/03/01/server-market-booms-last/