AMD outcomes for the third quarter of 2024 noticed its knowledge heart phase income enhance greater than 120% year-over-year to a file $3.5 billion. The corporate’s whole income for the third quarter was $6.8 billion.
“We delivered sturdy third quarter monetary outcomes with file income led by larger gross sales of EPYC and Intuition knowledge heart merchandise and strong demand for our Ryzen PC processors,” mentioned AMD Chair and CEO Dr. Lisa Su. “Wanting ahead, we see vital progress alternatives throughout our knowledge heart, consumer and embedded companies pushed by the insatiable demand for extra compute.”
Regardless of AMD CFO and Treasurer Jean Hu’s assertion that the corporate is “on-track to ship file annual income for 2024 based mostly on vital progress in our Information Middle and Consumer segments,” nonetheless, Wall Road analysts appeared unimpressed with the corporate’s fourth-quarter steerage of round $7.5 billion in income, representing year-on-year progress of twenty-two%. AMD’s inventory was down roughly 10% by the tip of day Wednesday.
On the corporate’s quarterly name, Su mentioned that within the knowledge heart phase, AMD believes that it gained server CPU share as a result of wins within the enterprise phase in addition to cloud suppliers increasing their use of AMD’s EPYC CPUs in cloud infrastructure. EPYC, she mentioned, “has turn into the CPU of alternative for the fashionable knowledge heart.” In call-outs to a variety of particular purposes and prospects that EPYC CPUs assist, Su mentioned that “Meta alone has deployed greater than 1.5 million EPYC CPUs throughout their world knowledge heart fleet to energy their social media platforms.”
She added that the corporate is “constructing sturdy momentum with giant enterprise prospects,” and mentioning particular buyer wins with giant expertise, power, monetary companies and automotive corporations through the third quarter, together with Airbus, Daimler Truck, FedEx, HSBC, Siemens, Walgreens and others.
Su additionally mentioned that based mostly on its momentum and product pipelines, AMD is “very well-positioned for continued progress in share positive aspects.”
AMD can be within the strategy of bolstering its place in AI silicon and methods, with the $4.9 billion acquisition of New Jersey-based ZT Methods. The transaction was introduced in August and AMD executives mentioned that it stays on-track to shut within the first half of 2025. Su added that AMD has obtained optimistic suggestions from prospects as a result of the ZT acquisition will allow hyperscalers to “quickly deploy AMD AI infrastructure at scale and offers OEMs and ODMs with optimized board and module designs for a variety of differentiated enterprise options.”
Su additionally mentioned that AMD has “constructed vital momentum throughout our knowledge heart AI enterprise with deployments growing throughout an increasing set of cloud, enterprise and AI prospects.” Subsequently, AMD expects its income from knowledge heart GPUs to exceed $5 billion this yr; the corporate had began out 2024 offering steerage of $2 billion in AI GPU income after which bumped that as much as $4.5 billion, and now to $5 billion.
When requested concerning the 2025 market, Su responded: “At a excessive degree … we really feel excellent concerning the market from the whole lot that we see.”
AMD did see decreases in two of its enterprise segments: Gaming revenues had been down practically 70% year-on-year, and its embedded phase is within the midst of what the corporate described as a gradual restoration, with revenues of $927 million, down 25% year-over-year however up 8% sequentially.
