AMD’s Q2 2024 Financials Reveal Impressive 17% Year-on-Year Profit Growth

Computex Taipei

AMD, the tech giant known for its processors and Graphics Cards, has just announced its revenue for the second quarter of 2024, and the numbers are impressive. With revenue of $5.8 billion and a gross margin of 49%, AMD is showing strong growth in the market.

According to Dr. Lisa Su, AMD’s Chair and CEO, the record-breaking revenue is largely driven by the Data Center segment, which saw a 115% year-over-year increase. This growth can be attributed to the high demand for AMD’s Instinct GPU and 4th Gen EPYC CPU. The AI business is also flourishing, with Dr. Su stating that the rapid advances in generative AI are creating significant growth opportunities for the company.

Jean Hu, AMD’s EVP, CFO, and Treasurer, added that the company executed well in the second quarter, with revenue exceeding expectations. Hu also highlighted the expansion of gross margin and solid earnings growth, as well as increased investments in strategic AI initiatives for future growth.

Taking a closer look at the different segments, the Data Center segment recorded a revenue of $2.8 billion, while the Client segment reached $1.5 billion. The Gaming segment, however, experienced a decline in revenue, with $648 million, and the Embedded segment saw a decrease of 41% year-over-year.

AMD has been stirring up the tech industry with its AI solutions portfolio. At Computex 2024, the company launched an expanded roadmap for its Instinct accelerator, which promises leadership AI performance and memory capabilities. Additionally, AMD announced the Ryzen AI 300 Series processors, which offer industry-leading AI processing power for Windows Copilot+ PCs.

The company has also been making strides in the cloud computing space. Cloud providers such as Microsoft are leveraging AMD’s Instinct MI300X accelerators to power their products, providing leading price/performance for GPT workloads.

AMD’s partnership with Oracle is another highlight. The HeatWave GenAI solution, powered by AMD EPYC CPUs, allows customers to harness the power of generative AI without requiring AI expertise. This opens up new possibilities for enterprise data analysis.

In the world of supercomputers, AMD is leading the pack. The Frontier supercomputer at Oak Ridge National Lab, powered by AMD EPYC CPUs and Instinct GPUs, has been ranked as the fastest supercomputer for the third year in a row. Lawrence Livermore National Laboratories also launched three new systems powered by the AMD Instinct MI300A APU.

AMD’s client and graphics products have also been making waves. The company announced the Ryzen 9000 Series processors, delivering top-notch performance in gaming, productivity, and content creation. The Ryzen PRO 8040 Series and 8000 Series mobile and desktop processors were also launched, catering to the needs of enterprises.

AMD’s embedded solutions are being utilized by various industries. Sun Singapore, for example, is using AMD Zynq UltraScale+ MPSoC devices to power its AI-based smart parking services, while Optiver is leveraging AMD’s high-performance compute engines for its data center infrastructure.

Looking ahead, AMD expects even more growth. For the third quarter of 2024, the company forecasts revenue of approximately $6.7 billion, representing a year-over-year growth of 16% and a sequential growth of 15%. With its strong performance and continued investments in AI, AMD is well-positioned for success in the coming months.

Background Information

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About AMD:

AMD, a large player in the semiconductor industry is known for its powerful processors and graphic solutions, AMD has consistently pushed the boundaries of performance, efficiency, and user experience. With a customer-centric approach, the company has cultivated a reputation for delivering high-performance solutions that cater to the needs of gamers, professionals, and general users. AMD's Ryzen series of processors have redefined the landscape of desktop and laptop computing, offering impressive multi-core performance and competitive pricing that has challenged the dominance of its competitors. Complementing its processor expertise, AMD's Radeon graphics cards have also earned accolades for their efficiency and exceptional graphical capabilities, making them a favored choice among gamers and content creators. The company's commitment to innovation and technology continues to shape the client computing landscape, providing users with powerful tools to fuel their digital endeavors.

  

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About Microsoft:

Microsoft, founded by Bill Gates and Paul Allen in 1975 in Redmond, Washington, USA, is a technology giant known for its wide range of software products, including the Windows operating system, Office productivity suite, and cloud services like Azure. Microsoft also manufactures hardware, such as the Surface line of laptops and tablets, Xbox gaming consoles, and accessories.

  

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About Oracle:

Oracle Corporation is a important American multinational technology company founded in 1977 and headquartered in Redwood City, California. It's one of the world's largest software and cloud computing companies, known for its enterprise software products and services. Oracle specializes in developing and providing database management systems, cloud solutions, software applications, and hardware infrastructure. Their flagship product, the Oracle Database, is widely used in businesses and organizations worldwide. Oracle also offers a range of cloud services, including Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and Software as a Service (SaaS).

  

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Event Info

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About Computex:

Computex, held annually in Taipei, Taiwan, stands as one of the world's leading technology trade shows, showcasing cutting-edge innovations in computing hardware, software, and emerging technologies. With a focus on industry trends and product launches, it serves as a pivotal platform for tech giants and startups alike to unveil their latest advancements and forge key partnerships, attracting a global audience of industry professionals, enthusiasts, and media representatives.

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Technology Explained

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APU: An APU, or Accelerated Processing Unit, is a type of processor that combines a CPU and a GPU on a single chip. This type of processor is becoming increasingly popular in the computer industry due to its ability to provide both computing and graphics processing power in a single package. APUs are used in a variety of applications, from gaming PCs to high-end workstations. They are also used in embedded systems, such as those found in smartphones and tablets. The combination of CPU and GPU on a single chip allows for more efficient power consumption and better performance than traditional CPUs. Additionally, APUs are often used in conjunction with other components, such as RAM and storage, to create powerful and efficient systems.

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CPU: The Central Processing Unit (CPU) is the brain of a computer, responsible for executing instructions and performing calculations. It is the most important component of a computer system, as it is responsible for controlling all other components. CPUs are used in a wide range of applications, from desktop computers to mobile devices, gaming consoles, and even supercomputers. CPUs are used to process data, execute instructions, and control the flow of information within a computer system. They are also used to control the input and output of data, as well as to store and retrieve data from memory. CPUs are essential for the functioning of any computer system, and their applications in the computer industry are vast.

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EPYC: EPYC is a technology designed by computer chip manufacturer AMD for use in the server and data center industry. It was introduced in June 2017 and features an innovative design to improve performance and power efficiency. EPYC processor technology is based on an innovative 14nm processor architecture, allowing up to 32 high-performance cores in a single socket. This allows for more efficient processing power, increased memory bandwidth, and greater compute density. EPYC is now widely used in the data center and cloud computing industry and provides benefits such as greater scalability, increased resource efficiency, and advanced virtualization capabilities. Additionally, EPYC technology is used in data intensive servers like server farms, gaming, and virtualization platforms. EPYC ensures that even with large deployments in multi-processor environments, power consumption and performance levels are optimized to ensure maximum efficiency.

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GPU: GPU stands for Graphics Processing Unit and is a specialized type of processor designed to handle graphics-intensive tasks. It is used in the computer industry to render images, videos, and 3D graphics. GPUs are used in gaming consoles, PCs, and mobile devices to provide a smooth and immersive gaming experience. They are also used in the medical field to create 3D models of organs and tissues, and in the automotive industry to create virtual prototypes of cars. GPUs are also used in the field of artificial intelligence to process large amounts of data and create complex models. GPUs are becoming increasingly important in the computer industry as they are able to process large amounts of data quickly and efficiently.

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