Superior Micro Gadgets reported income of $7.658 billion for the fourth quarter, up 24% from a yr in the past. However AMD’s inventory value fell in after-hours buying and selling to $113.66, down 4.89%.
Internet revenue was $482 million for the fourth quarter ended December 31, down 28% from $667 million a yr earlier.
AMD noticed information middle section income of $3.9 billion within the quarter, up 69% from a yr in the past. It was pushed by report Epyc CPU and Intuition GPU revenues — and the demand is being pushed by the speedy adoption of AI. For 2024, information middle section income was a report $12.6 billion, a rise of 94% in comparison with the prior yr, pushed by progress in each AMD Intuition and Epyc processors.
Exiting 2024, there are greater than 450 Epyc platforms obtainable from the main server OEMs and ODMs, together with greater than 120 “Turin” platforms that went into manufacturing within the fourth quarter from Cisco, Dell, HPE, Lenovo, Supermicro and others.
“2024 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,” Su stated.
Lisa Su is CEO of AMD.
In cloud, AMD exited 2024 with properly over 50% share on the majority of the biggest hyperscale prospects.
“Hyperscaler demand for EPYC CPUs was very strong, driven by expanded deployments powering both their internal compute infrastructure and online services,” Su stated. “Public cloud demand was additionally very sturdy with the variety of Epyc cases growing 27% in 2024 to greater than 1,000.
AWS, Alibaba, Google, Microsoft, and Tencent launched greater than 100 AMD basic purposeand AI cases within the fourth quarter alone.
Shopper income within the quarter was $2.3 billion, up 58% from a yr earlier. AMD itself anticipated total This fall to come back in at $7.5 billion in income, plus or minus $300 million. Again in November, AMD introduced that it was shedding 4% of its employees, or about 1,000 folks.
In shoppers, Su stated AMD noticed market share features for the fourth straight quarter. She siad the desktop channel sell-out within the fourth quarter in a number of areas as Ryzen dominated the bestselling CPU lists at many retailers globally, exceeding 70% share at Amazon, Newegg, Mindfactory and quite a few others over the vacation interval.
Trying into 2025, Su stated AMD is planning for the PC whole obtainable market (TAM) to develop by a mid-single digit share year-on-year.
“Based on the breadth of our leadership client CPU portfolio and strong design win momentum, we believe we can grow client segment revenue well ahead of the market,” she stated.
The gaming section noticed income of $563 million, down 58% from a yr in the past as a result of decrease semi-custom income. That income primarily comes from gross sales from Xbox and PlayStation recreation console revenues.
As for gaming, Su stated within the name that income declined 59% year-over-year to $563 million as a result of semi-custom gross sales declined as anticipated as Microsoft and Sony centered on decreasing channel stock.
“Overall, this console generation has been very strong, highlighted by cumulative unit shipmentssurpassing 100 million in the fourth quarter,” she stated. “Looking forward, we believe channel inventories have now normalized, and semi-custom sales will return to more historical patterns in 2025.”
And in gaming graphics on the PC, Su stated income declined year-over-year as AMD accelerated channel sell-out in preparation for the launch of our next-gen Radeon 9000 collection GPUs.
“Our focus with this generation is to address the highest volume portion of the enthusiast gaming market with our new RDNA 4 architecture,” Su stated. “RDNA 4 delivers significantly better ray tracing performance and adds support for AI-powered upscaling technology that will bring high-quality 4K gaming to mainstream players when the first Radeon 9070 series GPUs go on sale in early March.”
Embedded section income of $923 million, down 13% from a yr in the past as prospects continued to normalize stock ranges.
AMD Ryzen AI PRO 300 Collection
For the primary quarter of 2025, AMD expects income to be roughly $7.1 billion, plus or minus $300 million. On the mid-point of the income vary, this represents year-over-year progress of roughly 30% and a sequential decline of roughly 7%. Non-GAAP gross margin is anticipated to be roughly 54%.
“2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” stated AMD CEO Lisa Su, in a press release. “Data Center segment annual revenue nearly doubled as Epyc processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue. Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing.”
In an analyst name, Su stated, “2024 was a transformative year for AMD. We successfully established our multibillion-dollar data center AI franchise, launched a broad set of leadership products and gained significant server and PC market share. As a result, we delivered record annual revenue, grew net income 26 percent for the year and more than doubled free cash flow from 2023.”
She added that the information middle section contributed roughly 50% of annual income as Intuition and Epyc processor adoption expanded considerably with cloud, enterprise and supercomputing prospects. This fall outcomes have been pushed by information middle and shopper section progress — each grew at a double-digit share.
On a full-year foundation, annual income grew 14% to $25.8 billion as Knowledge Middle income almost doubled and Shopper section income grew 52%, greater than offsetting declines within the gaming and embedded segments.
“We closed 2024 with a strong fourth quarter, delivering record revenue up 24% year-over-year, and accelerated earnings expansion while investing aggressively in AI and innovation to position us for long-term growth and value creation,” stated AMD CFO Jean Hu, in a press release.
As famous, AMD laid off about 1,000 of its 26,000 workers beginning in November. That was about 4% of its employees. AMD’s personal layoffs come at a time when AMD has been soundly beating Intel within the x86 processor market. However AMD has additionally been second within the transition from graphics processing items (GPUs) to AI accelerators in competitors with AI chip market big Nvidia.
However Mercury Analysis stories that AMD’s This fall share of processors in opposition to Intel is 34% now, up dramatically from years in the past.
Su stated AMD closed a report $14 billion of design wins in 2024, up greater than 25% year-over-year as buyer adoption of the industry-leading adaptive computing platforms expands and AMD received giant, new embedded processor designs.
Because of Epyc and Ryzen processors, AMD expects to proceed gaining market share all year long.
“For 2025, we expect the demand environment to strengthen across all of our businesses, driving strong growth in our data center and client businesses and modest increases in our gaming and embedded businesses,” Su stated. “Against this backdrop, we believe we can deliver strong double digit percentage revenue and EPS growth year-over-year.”
Su talked about DeepSeek, the Chinese language-made AI mannequin that may with minimal use of GPUs. That resulted in a crash in tech shares, together with Nvidia’s inventory value specifically.
“Looking further ahead, the recent announcements of significant AI infrastructure investments like Stargate and latest model breakthroughs from DeepSeek and the Allen Institute highlight the incredibly rapid pace of AI innovation across every layer of the stack, from silicon, to algorithms, models, systems and applications,” Su stated. “These are exactly the types of advances we want to see as the industry invests in increased compute capacity while pushing the envelope on software innovation to make AI more accessible and enable breakthrough generative and agentic AI experiences that can run on virtually everydigital device.”
Su stated she believes the tendencies place AMD on a steep long-term progress trajectory, led by the speedy scaling of the information middle AI franchise from greater than $5 billion of income in 2024 to tens of billions of {dollars} of annual income over the approaching years.
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