Superior Micro Units (AMD) surpassed Q2 gross sales forecasts, reporting a major income enhance. Whereas its information middle income surged, AMD can be striving for bold local weather targets and carbon footprint reductions. As the corporate grows, can its sustainability efforts sustain with its technological developments and market success?
AMD Beats Q2 Gross sales Estimates, Information Heart Income Soars
AMD exceeded analysts’ gross sales expectations for Q2, with income hitting $5.8 billiona 9% improve from the earlier 12 months. Regardless of web earnings falling brief at $265 million or 16 cents per share, adjusted earnings of 69 cents per share surpassed forecasts.
Data center income greater than doubled to $2.8 billion, pushed by surging demand for AI chips. CEO Lisa Su highlighted development alternatives from advances in generative AI. AMD initiatives $6.7 billion in Q3 gross sales and expects sturdy income development.
The chipmaker’s shares surged over 7% to $138.44 in after-hours buying and selling following the earnings report.
AMD’s Local weather Dedication and Methods for Internet Zero
Superior Micro Units has set a strong goal to attain web zero by 2050. This bold dedication displays AMD’s dedication to decreasing its carbon footprint and addressing local weather change via a multifaceted strategy that features bettering power effectivity, sourcing renewable power, and investing in provide chain emission administration.
Decreasing Carbon Emissions
In 2021, AMD established a brand new science-based goal aligned with a 1.5°C state of affairs: a 50% absolute discount in greenhouse fuel (GHG) emissions from its operations (Scope 1 and a couple of) by 2030, utilizing 2020 as the bottom 12 months. This goal builds on AMD’s earlier successes in decreasing its emissions and underscores the corporate’s dedication to additional emissions reductions.
Following the acquisition of Xilinx and Pensando in 2022, AMD recalculated its baseline power use and GHG emissions to incorporate the mixed firm’s footprint. The revised 2020 baseline for power use elevated from 123 GWh to 199 GWhand working emissions rose from 30,009 to 61,754 metric tons of CO2 equal.
Regardless of this adjustment, AMD achieved a 19% discount in working emissions in comparison with the revised baseline in 2022.
Power Effectivity and Renewable Power
Power effectivity is a cornerstone of AMD’s technique to slash its carbon footprint. The corporate has made important strides in bettering the effectivity of its merchandise and operations.
The chipmaker’s aim is to attain a 30x improve in power effectivity for AMD processors and accelerators in servers for HPC and AI coaching from 2020 to 2025. This goals to speed up trade tendencies by 2.5x in comparison with 2015-2020, primarily based on international power consumption for these segments. By mid-2023, AMD is on observe for a 13.5x enchancment utilizing 4 AMD Intuition MI300A APUs.
Furthermore, AMD has elevated its sourcing of renewable energywith 66 GWh sourced in 2022, accounting for about 32% of its complete international power use, in comparison with 18% within the revised 2020 baseline. This renewable power is sufficient to energy roughly 9,275 houses within the U.S. for a 12 months.
At its San Jose campus, AMD has applied on-site photo voltaic era, together with a 1.4 MW photo voltaic system with 3,600 panels and a 600 kW rooftop photo voltaic set up. This setup features a 1 MWh battery storage system that shops extra power for later use and might ship surplus power again to the native energy grid.
Environmental Affect and Achievements
Progress In direction of Objectives
AMD’s environmental targets embody a 50% discount in absolute GHG emissions from operations by 2030 and a 30-fold improve in power effectivity for processors and accelerators utilized in AI coaching and high-performance computing by 2025.
As of mid-2023, AMD is on observe for a 13.5-fold enchancment in power effectivity for accelerated compute nodes from the 2020 baseline.
Moreover, AMD goals to have 100% of its direct manufacturing suppliers set public emissions discount targets by 2025. As of 2022, 70% of those suppliers had such targets. AMD additionally targets having 80% of its direct manufacturing suppliers supply renewable power by 2025, with 68% already assembly this criterion in 2022.
Operational Effectivity
AMD operates over 90 areas worldwide, together with engineering services, gross sales websites, and company places of work. The corporate is dedicated to making use of rigorous environmental requirements throughout its operations. AMD’s International Environmental, Well being, and Security (EHS) Requirements align with ISO 14001, a well known commonplace for environmental administration. Notably, AMD’s San Jose and Singapore websites are ISO 14001 licensed.
In 2022, AMD applied roughly 20 power conservation initiatives, together with gear upgrades that saved about 1.4 million kWh of electrical energy. These efforts replicate AMD’s dedication to decreasing power use and GHG emissions throughout its operations.
Addressing Provide Chain Carbon Emissions
AMD’s provide chain, notably silicon wafer manufacturing, is a major supply of its GHG emissions. In 2022, direct foundry suppliers diminished their Scope 1 and a couple of emissions by about 9% in comparison with 2020, although absolute emissions elevated as a result of increased power calls for of extra superior expertise nodes.
AMD goals to double the renewable power use of its major foundry manufacturing suppliers from 2020 to 2025. The corporate can be centered on forecasting and mitigating GHG emissions in its provide chain, notably in Taiwan, the place most AMD wafers are manufactured. AMD is actively collaborating within the SEMI Local weather Consortium to advertise renewable energy infrastructure within the area.
AMD’s dedication to web zero is backed by a complete technique that emphasizes power effectivity, renewable power, and sturdy provide chain administration. By setting science-based targets, AMD is making important strides towards decreasing its carbon footprint and supporting international local weather targets.
