President and Chief Executive Officer at Advanced Micro Devices
Thank you, Laura, and good afternoon to all those listening in today. 2021 was an outstanding year for AMD as we exceeded our aggressive growth goals and delivered another record year. Each of our businesses grew significantly and set new annual revenue record, highlighted by data center revenue more than doubling year-over-year. Annual revenue grew 68% to a record $16.4 billion and we expanded gross margin for the sixth straight year. We also delivered record net income and EPS, both of which more than doubled year-over-year.
Looking at the fourth quarter, we ended the year exceptionally strong with our sixth straight quarter of greater than 45% year-over-year revenue growth. Fourth quarter revenue grew 49% from a year ago to a record $4.8 billion. We expanded gross margin by more than 5 percentage points and doubled operating income year-over-year.
Turning to our Computing and Graphics segment. Revenue increased 32% year-over-year to $2.6 billion, driven by growth in both Ryzen and Radeon processor sales. Record client computing revenue grew by a double-digit percentage from a year ago, led by record notebook sales. We saw strong demand for premium AMD notebooks and our higher end desktop CPUs in the quarter as Ryzen 5000 processor unit shipments grew by a double-digit percentage sequentially. As a result, we believe we gained client processor revenue share for the seventh straight quarter.
We launched our Ryzen 6000 Series notebook CPUs at CES last month, featuring our new Zen 3+ Core that further extends the leadership compute, gaming and battery life capabilities of our mobile processors. We increased the number of premium gaming and commercial design wins from Acer, Asus, Dell, HP, Lenovo and other major PC providers to more than 200, including more than 20 AMD Advantage notebooks that combined Ryzen CPUs, Radeon GPUs and Radeon Software to deliver the ultimate gaming experience.
We also provided the first public demonstration of our upcoming Ryzen 7000 desktop processors at CES. Ryzen 7000 Series desktop CPUs provide a significant performance increase compared to our current Ryzen processors by combining our high-performance 5-nanometers Zen 4 Core with our next generation memory and IO technologies in the new AM5 Socket. There is a lot of excitement in the market for our next-gen Ryzen desktop processors, and we're on track to launch in the second half of 2022.
In Graphics, revenue more than doubled year-over-year for the third straight quarter. Radeon 6000 Series GPU unit shipments and revenue both grew by double-digit percentages sequentially led by strong demand across our RDNA 2 desktop family. At CES, we announced that we expanded our Radeon 6000 Series GPU portfolio with our first mainstream RDNA 2 desktop GPU priced at $199. We also introduced new mobile GPUs that deliver up to 20% more performance than our prior generation and our first mobile graphics chips for thin and light gaming notebooks.
Data center graphics revenue more than doubled year-over-year driven largely by HPC wins for our latest Instinct MI200 accelerator. We are seeing growing customer engagements for our data center GPUs based on the leadership AI and HTC performance of our new MI200 accelerators, highlighted by multiple supercomputing wins and an expanded set of platforms on track to launch from Asus, Dell, HP, Lenovo, Supermicro and others starting later this quarter.
Turning to our Enterprise, Embedded and Semi-Custom segment. Revenue increased 75% year-over-year to $2.2 billion, driven by record EPYC processor and semi-custom sales. Semi-Custom sales increased year-over-year as the current game console cycle continues outpacing all prior generations. We expect revenue to grow this year driven by continued strong demand for the latest Microsoft and Sony consoles.
Turning to Server. We had another outstanding quarter. Revenue more than doubled year-over-year and increased by a double-digit percentage sequentially driven by demand across both cloud and enterprise customers. In cloud, revenue more than doubled year-over-year as the largest providers expanded internal deployments and more than 130 new AMD-powered instances launched from Amazon Web Services, Alibaba, Google, IBM, Microsoft Azure and others.
Microsoft Azure previewed a new HPC instance powered by our 3rd Gen EPYC processors with 3D stack memory that delivers up to 80% more performance than currently available instances. Our differentiated 3D stacking technology further extends the leadership performance of EPYC processors in technical computing workloads like EDA, fluid dynamics and complex simulations. We started volume production of EPYC processors with 3D stack memory earlier this quarter in advance of OEM platform launches with all our major server partners.
In Enterprise, revenue doubled year-over-year driven by the ongoing ramp of more than 100 3rd Gen EPYC platforms available from Dell, HP Enterprise, Lenovo, Supermicro, Cisco and others. In HPC, EPYC processor adoption was highlighted by the number of AMD-powered supercomputers on the November Top 500 Fastest Supercomputers' list, tripling year-over-year to 73. EPYC processors also dominated the Green 500 list and are now powering eight of the top 10 Most Efficient Supercomputers in the World.
Turning to our overall data center business. We made outstanding progress in the last year. We exit 2021 with data center revenue contributing a mid-20s percentage of overall revenue. And we expect 2022 to be another year of significant growth based on the strong customer demand signals for our current and next generation products. In November, we provided first details of our next generation EPYC processor, codenamed Genoa, that will feature up to 96 Zen 4 cores and next generation memory and IO technologies, including breakthrough memory expansion capabilities. Customer excitement for Genoa is extremely high as it extends our performance leadership across a broad range of workloads.
We also announced the addition of Bergamo to our server roadmap, featuring a version of our Zen 4 core called Zen 4c that has been specifically optimized for cloud native computing. Bergamo is a high core count power-efficient CPU that can be used in the same platforms as Genoa. It will feature up to 128 CPU cores and deliver significant performance and power efficiency advantages for cloud workloads. We are sampling general processors to customers now and are on track to launch later this year with Bergamo shipments plan to follow in the first half of 2023.
Turning towards Xilinx acquisition, we were pleased to announce that China State Administration for Market Regulation approved the transaction on January 27. The only remaining regulatory approval required is FTC approval of our HSR refiling, and we expect to close the transaction in the first quarter of 2022. I am more excited than ever about the benefits of the acquisition for both AMD and Xilinx's stakeholders. Customer excitement is also high as they look forward to the opportunity to deepen their strategic engagements with AMD based on our expanded technology and solutions portfolio.
In summary, I am incredibly proud of our performance in 2021. Our record annual results highlight our strong execution over multiple years to establish the technical, operational and strategic foundation to position AMD as the high performance computing leader. Each of our businesses performed extremely well in 2021 with growth significantly ahead of the long-term financial model we outlined at our Financial Analyst Day in 2020. I want to take a moment to recognize and thank the AMD employees whose passion, dedication and execution have enabled this success.
Turning to 2022. Demand for our products is very strong, and we look forward to another year of significant growth and share gain as we ramp our current products and launch our next wave of Zen 4 CPUs and RDNA 3 GPUs. We have also made significant investments to secure the capacity needed to support our growth in 2022 and beyond. Looking out over the long term, we are confident in our ability to continue growing significantly faster than the market based on our expanded roadmap investments and the deep relationships we have established with the broad set of customers who view AMD as a strategic enabler of their success.
Now I'd like to turn the call over to Devinder to provide some additional color on our fourth quarter and full year financial performance. Devinder?