Thursday, February 13, 2025

AMD sees huge 24% income surge in This autumn however 28% decrease revenue dipped shares


In a nutshell: AMD reported blockbuster This autumn outcomes, with income hovering 24 p.c year-over-year to $7.66 billion. The info middle enterprise thrived because of extensive enterprise adoption of synthetic intelligence workloads. Regardless of this development, the corporate’s inventory took successful in after-hours buying and selling, dipping almost 5 p.c.

Quarterly income beat AMD’s forecast of roughly $7.5 billion. Web revenue was $482 million, down 28 p.c from the year-ago interval’s $667 million revenue.

The star of AMD’s This autumn present was its booming information middle enterprise. Knowledge middle phase income skyrocketed 69 p.c to $3.9 billion in comparison with This autumn 2023. In the meantime, for fiscal yr 2024, AMD’s information middle income hit a brand new excessive of $12.6 billion, almost doubling with a 94-percent leap versus 2023.

File gross sales of Epyc server CPUs and Intuition AI accelerator fueled AMD’s information middle development. Over 450 Epyc server platforms are actually accessible from main OEMs like Cisco, Dell, HPE, and Lenovo, together with 120 new designs primarily based on AMD’s newest “Turin” Epyc chips launched in This autumn. Most significantly, the corporate exited 2024 with over 50 p.c CPU share at most main cloud suppliers.

“[It] was an excellent yr as we accelerated our AI {hardware} roadmap to ship an annual cadence of latest Intuition accelerators, expanded our ROCm software program suite with important uplifts in inferencing and coaching efficiency, constructed sturdy buyer relationships with key trade leaders, and delivered larger than $5 billion of knowledge middle AI income for the yr,” mentioned AMD CEO Lisa Su.

The corporate’s consumer CPU enterprise additionally shined, with phase income up 58 p.c year-over-year to $2.3 billion in This autumn. The corporate noticed PC processor market share develop for the fourth consecutive quarter, with its Ryzen desktop CPUs dominating bestseller lists at main retailers over the vacations.

Looking forward to 2025, AMD expects mid-single-digit development within the general PC market and believes it could possibly develop consumer income quicker than the market primarily based on its “management consumer CPU portfolio.”

The one gentle spot was gaming, the place phase income plunged 58 p.c to $563 million resulting from declining chip gross sales for growing older recreation consoles like PlayStation and Xbox. Nonetheless, Su mentioned channel inventories have normalized and can return to regular this yr.

Income declined on the PC graphics entrance as the corporate cleared stock forward of the RDNA 4 Radeon 9000-series GPU launch in early March. Su touted the improved ray tracing and AI upscaling capabilities of RDNA 4, positioning it to drive mainstream 4K gaming adoption.

AMD closed 2024 with $25.8 billion in annual income, up 14 p.c over 2023, as information middle and consumer positive factors offset gaming headwinds. For Q1 2025, AMD expects $7.1 billion in income, plus or minus $300 million.

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