Advanced Micro Devices (AMD) is a big tech company from the U.S., based in Santa Clara, California. It started in 1969 and makes CPUs (central processing units) and GPUs (graphics processing units), which are important for computers. AMD’s products are used in gaming, data centers, AI, and other areas. They are known for their Ryzen processors, Radeon graphics cards, and EPYC server processors. AMD focuses on creating advanced computing solutions for both everyday users and businesses.
For more than 50 years, AMD has been making high-performance computing, graphics, and visualization technologies better. AMD creates top-tier, adaptable products that push the limits of technology.
AMD Fiscal Q4 2024
Advanced Micro Devices (AMD) announced its financial results for the fourth quarter and full year of 2024.
In the fourth quarter, AMD achieved a record revenue of $7.7 billion with a gross margin of 51%. The operating income for the quarter was $871 million. Also, the net income reached $482 million, resulting in diluted earnings per share (EPS) of $0.29.
On a non-GAAP basis, the gross margin was 54%, operating income was a record $2 billion, net income was a record $1.8 billion, and diluted EPS was $1.09.
For the entire year of 2024, AMD reported a record revenue of $25.8 billion with a gross margin of 49%. The operating income for the year was $1.9 billion, while the net income totaled $1.6 billion, leading to diluted EPS of $1.00.
Highlights
In Q4 2024, AMD achieved record revenue in the Data Center segment, reaching $3.9 billion, up 69% year-over-year, driven by strong AMD Instinct GPU shipments and AMD EPYC CPU sales. For the full year, Data Center revenue was a record $12.6 billion, up 94%. The Client segment also saw record quarterly revenue of $2.3 billion, up 58% year-over-year, with full-year revenue of $7.1 billion, up 52%, due to high demand for AMD Ryzen processors.
The Gaming segment’s quarterly revenue was $563 million, down 59% year-over-year, and full-year revenue was $2.6 billion, down 58%, mainly due to decreased semi-custom revenue.
Recent highlights include expanded partnerships for AI infrastructure, advancements in AI software with ROCm 6.3, and strategic collaborations with companies like IBM, Vultr, and Aleph Alpha. AMD continues to lead in high-performance computing, with new supercomputing projects and AI deployments.
Outlook
For Q1 2025, AMD expects revenue around $7.1 billion, give or take $300 million. This means about 30% growth from last year but a 7% drop from the previous quarter. The non-GAAP gross margin is expected to be around 54%.
Boards Statements
According to AMD Chair and CEO Dr. Lisa Su, 2024 was a transformative year for AMD, marked by record annual revenue. She highlighted that the Data Center segment’s annual revenue nearly doubled due to the accelerated adoption of EPYC processors and the achievement of over $5 billion in AMD Instinct accelerator revenue.
Dr. Su expressed optimism for 2025, noting clear opportunities for continued growth driven by the strength of AMD’s product portfolio and the growing demand for high-performance and adaptive computing.
AMD EVP, CFO and Treasurer Jean Hu remarked that AMD closed 2024 with a strong fourth quarter, achieving record revenue that was up 24% year-over-year. She emphasized that the company had accelerated earnings expansion. Also, aggressively investing in AI and innovation to position AMD for long-term growth and value creation.
Impact on the Stock Market
Despite AMD reporting record revenue of $7.7 billion for Q4 2024, their GAAP net income and earnings per share (EPS) fell. This decline was mainly due to increased operating expenses and a significant drop in their Gaming segment.
Additionally, AMD’s revenue guidance for 2025 was below expectations, causing concerns among investors. These factors led to an 8% drop in AMD’s stock in pre-market trading.
