AMD introduces Financial Performance for Q4 and Full Year 2024

AMD’s Stellar Financial Performance in 2024

Today, AMD dropped some exciting news about its financial performance for the fourth quarter and the entire year of 2024. Buckle up, because the numbers are impressive! The fourth quarter alone raked in a whopping $7.7 billion in revenue, boasting a gross margin of 51%. The operating income hit $871 million, with a net income of $482 million and diluted earnings per share landing at $0.29. If you look at the non-GAAP figures, it gets even better: gross margin climbed to 54%, operating income soared to $2.0 billion, net income reached $1.8 billion, and diluted earnings per share jumped to $1.09.

For the entire year, AMD reported record revenue of $25.8 billion, with a gross margin of 49% and operating income of $1.9 billion. Net income stood at $1.6 billion, and diluted earnings per share were $1.00. Non-GAAP figures reveal even more growth: gross margin at 53%, operating income at $6.1 billion, net income at $5.4 billion, and diluted earnings per share at an impressive $3.31.

A Transformative Year for AMD

Dr. Lisa Su, AMD’s Chair and CEO, described 2024 as a transformative year for the company, highlighting their remarkable growth trajectory. “Data Center segment annual revenue nearly doubled as EPYC processor adoption accelerated,” she noted. Plus, they pulled in over $5 billion in revenue from AMD Instinct accelerators. As we look ahead to 2025, Dr. Su sees clear opportunities for continued growth, fueled by a robust product lineup and an increasing demand for high-performance and adaptive computing.

Jean Hu, AMD’s EVP, CFO, and Treasurer, echoed this sentiment. “We closed 2024 with a strong fourth quarter, delivering record revenue up 24% year-over-year,” she said. The focus on innovation, particularly in AI, is a key part of AMD’s strategy for long-term growth.

Breaking Down the Segments

Let’s take a closer look at how each segment performed. The Data Center segment really shined, bringing in a record $3.9 billion in the fourth quarter, which is a staggering 69% increase year-over-year. This surge was primarily due to the strong ramp-up of AMD Instinct GPU shipments and the growing sales of AMD EPYC CPUs. For the whole year, Data Center revenue hit $12.6 billion, a remarkable 94% increase.

The Client segment also had a stellar quarter, with revenue reaching $2.3 billion, up 58% year-over-year, thanks to the soaring demand for AMD Ryzen processors. For 2024, this segment reported record revenue of $7.1 billion, marking a 52% increase.

However, not all segments were on the upswing. The Gaming segment saw revenue drop to $563 million, down 59% year-over-year, primarily due to a decrease in semi-custom revenue. Similarly, the Embedded segment reported $923 million, a 13% decline, as demand remained mixed.

Recent Highlights and Strategic Partnerships

AMD isn’t just resting on its laurels; it’s busy expanding its partnerships to enhance AI infrastructure. For instance, IBM plans to deploy AMD Instinct MI300X accelerators to power generative AI and HPC applications on its cloud platform. Additionally, AMD has teamed up with Vultr to leverage these accelerators and ROCm open software for enterprise AI development. Even Aleph Alpha is on board, using AMD’s technology to simplify the development of sovereign AI solutions.

On the software front, AMD has ramped up its AI software roadmap, releasing ROCm 6.3 with performance enhancements for faster inferencing on AMD Instinct accelerators. And let’s not forget about the collaboration with Dell, where AMD Ryzen AI PRO processors will power new commercial PCs, delivering exceptional battery life and on-device AI capabilities.

Looking Ahead: AMD’s Future Outlook

As we step into 2025, AMD’s outlook remains cautiously optimistic. They expect revenue for the first quarter to be around $7.1 billion, plus or minus $300 million. This projection reflects a year-over-year growth of approximately 30%, although it does indicate a sequential decline of about 7%. The non-GAAP gross margin is expected to hover around 54%.

With such a strong performance in 2024 and a clear focus on innovation and growth, it seems AMD is well-positioned to continue its upward trajectory. What do you think? Will they maintain this momentum into 2025? Only time will tell!

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 Dell:

Dell is a globally technology leader providing comprehensive solutions in the field of hardware, software, and services. for its customizable computers and enterprise solutions, Dell offers a diverse range of laptops, desktops, servers, and networking equipment. With a commitment to innovation and customer satisfaction, Dell caters to a wide range of consumer and business needs, making it a important player in the tech industry.

  

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About IBM:

IBM, or International Business Machines Corporation, is a globally American multinational technology company with a storied history dating back to its founding in 1911. Over the decades, IBM has consistently been at the forefront of innovation in the field of information technology. The company is known for its pioneering work in computer hardware, software, and services, with breakthroughs like the IBM System/360 and the invention of the relational database.

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Technology Explained

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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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HPC: HPC, or High Performance Computing, is a type of technology that allows computers to perform complex calculations and process large amounts of data at incredibly high speeds. This is achieved through the use of specialized hardware and software, such as supercomputers and parallel processing techniques. In the computer industry, HPC has a wide range of applications, from weather forecasting and scientific research to financial modeling and artificial intelligence. It enables researchers and businesses to tackle complex problems and analyze vast amounts of data in a fraction of the time it would take with traditional computing methods. HPC has revolutionized the way we approach data analysis and has opened up new possibilities for innovation and discovery in various fields.

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