In a nutshell: AMD reported blockbuster Q4 results, with revenue soaring 24 percent year-over-year to $7.66 billion. The data center business thrived thanks to wide enterprise adoption of artificial intelligence workloads. Despite this growth, the company’s stock took a hit in after-hours trading, dipping nearly five percent.
Quarterly revenue beat AMD’s forecast of roughly $7.5 billion. Net income was $482 million, down 28 percent from the year-ago period’s $667 million profit.
The star of AMD’s Q4 show was its booming data center business. Data center segment revenue skyrocketed 69 percent to $3.9 billion compared to Q4 2023. Meanwhile, for fiscal year 2024, AMD’s data center revenue hit a new high of $12.6 billion, nearly doubling with a 94-percent jump versus 2023.
Record sales of Epyc server CPUs and Instinct AI accelerator fueled AMD’s data center growth. Over 450 Epyc server platforms are now available from major OEMs like Cisco, Dell, HPE, and Lenovo, including 120 new designs based on AMD’s latest “Turin” Epyc chips launched in Q4. Most importantly, the company exited 2024 with over 50 percent CPU share at most major cloud providers.
“[It] 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,” said AMD CEO Lisa Su.
The company’s client CPU business also shined, with segment revenue up 58 percent year-over-year to $2.3 billion in Q4. The company saw PC processor market share grow for the fourth consecutive quarter, with its Ryzen desktop CPUs dominating bestseller lists at major retailers over the holidays.
Looking ahead to 2025, AMD expects mid-single-digit growth in the overall PC market and believes it can grow client revenue faster than the market based on its “leadership client CPU portfolio.”
The one soft spot was gaming, where segment revenue plunged 58 percent to $563 million due to declining chip sales for aging game consoles like PlayStation and Xbox. However, Su said channel inventories have normalized and will return to usual this year.
Revenue declined on the PC graphics front as the company cleared inventory ahead 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 revenue, up 14 percent over 2023, as data center and client gains offset gaming headwinds. For Q1 2025, AMD expects $7.1 billion in revenue, plus or minus $300 million.
