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Advanced Micro Devices reported revenue of $7.658 billion for the fourth quarter, up 24% from a year ago. But AMD’s stock price fell in after-hours trading to $113.66, down 4.89%.
Financial Overview
Net income was $482 million for the fourth quarter ended December 31, down 28% from $667 million a year earlier.
Data Center Segment Growth
AMD saw data center segment revenue of $3.9 billion in the quarter, up 69% from a year ago. It was driven by record Epyc CPU and Instinct GPU revenues — and the demand is being driven by the rapid adoption of AI. For 2024, data center segment revenue was a record $12.6 billion, an increase of 94% compared to the prior year, driven by growth in both AMD Instinct and Epyc processors.
Server OEMs and ODMs
Exiting 2024, there are more than 450 Epyc platforms available from the leading server OEMs and ODMs, including more than 120 “Turin” platforms that went into production in the fourth quarter from Cisco, Dell, HPE, Lenovo, Supermicro and others.
AI Hardware Roadmap
“2024 was an outstanding year as we accelerated our AI hardware roadmap to deliver an annual cadence of new Instinct accelerators, expanded our ROCm software suite with significant uplifts in inferencing and training performance, built strong customer relationships with key industry leaders and delivered greater than $5 billion of data center AI revenue for the year,” Su said.
Lisa Su is CEO of AMD.
Cloud and Hyperscaler Demand
In cloud, AMD exited 2024 with well over 50% share at the majority of the largest hyperscale customers. “Hyperscaler demand for EPYC CPUs was very strong, driven by expanded deployments powering both their internal compute infrastructure and online services,” Su said. “Public cloud demand was also very strong with the number of Epyc instances increasing 27% in 2024 to more than 1,000.” AWS, Alibaba, Google, Microsoft, and Tencent launched more than 100 AMD general purpose and AI instances in the fourth quarter alone.
Financial Performance and Market Share
Client revenue in the quarter was $2.3 billion, up 58% from a year earlier. AMD itself expected overall Q4 to come in at $7.5 billion in revenue, plus or minus $300 million. Back in November, AMD announced that it was laying off 4% of its staff, or about 1,000 people.
Outlook for 2025
Looking into 2025, Su said AMD is planning for the PC total available market (TAM) to grow by a mid-single digit percentage year-on-year. “Based on the breadth of our leadership client CPU portfolio and strong design win momentum, we believe we can grow client segment revenue well ahead of the market,” she said.
Gaming Segment and Future Plans
The gaming segment saw revenue of $563 million, down 58% from a year ago due to lower semi-custom revenue. As for gaming graphics on the PC, Su said revenue declined year-over-year as AMD accelerated channel sell-out in preparation for the launch of our next-gen Radeon 9000 series GPUs.
Embedded segment revenue of $923 million, down 13% from a year ago as customers continued to normalize inventory levels.
AMD Ryzen AI PRO 300 Series
Financial Outlook for 2025
For the first quarter of 2025, AMD expects revenue to be approximately $7.1 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 30% and a sequential decline of approximately 7%. Non-GAAP gross margin is expected to be approximately 54%.
Summary and Future Growth
“2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” said AMD CEO Lisa Su, in a statement. “Data Center segment annual revenue nearly doubled as Epyc processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue. Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing.”
FAQs
Q: How did AMD perform financially in the fourth quarter of 2024?
A: AMD reported revenue of $7.658 billion, up 24% from the previous year, but the stock price fell in after-hours trading.
Q: What were the key drivers of AMD’s data center segment revenue growth?
A: The growth was driven by record Epyc CPU and Instinct GPU revenues, fueled by the rapid adoption of AI.
Q: What are AMD’s plans for future growth in 2025?
A: AMD aims to grow client segment revenue ahead of the market and capitalize on opportunities for continued growth.
Q: How did AMD’s gaming segment perform in the fourth quarter of 2024?
A: The gaming segment saw a revenue decline due to lower semi-custom revenue, but AMD is preparing to launch next-gen Radeon GPUs for future growth.
Credit: venturebeat.com
