AMD outcomes for the third quarter of 2024 noticed its knowledge heart section income improve greater than 120% year-over-year to a report $3.5 billion. The corporate’s complete income for the third quarter was $6.8 billion.
“We delivered robust third quarter monetary outcomes with report income led by greater gross sales of EPYC and Intuition knowledge heart merchandise and strong demand for our Ryzen PC processors,” stated AMD Chair and CEO Dr. Lisa Su. “Trying ahead, we see important 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 report annual income for 2024 based mostly on important progress in our Information Heart and Shopper segments,” nevertheless, Wall Avenue 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 stated that within the knowledge heart section, AMD believes that it gained server CPU share because of wins within the enterprise section in addition to cloud suppliers increasing their use of AMD’s EPYC CPUs in cloud infrastructure. EPYC, she stated, “has develop into the CPU of alternative for the fashionable knowledge heart.” In call-outs to quite a few particular functions and clients that EPYC CPUs assist, Su stated 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 robust momentum with giant enterprise clients,” and mentioning particular buyer wins with giant expertise, vitality, monetary companies and automotive firms through the third quarter, together with Airbus, Daimler Truck, FedEx, HSBC, Siemens, Walgreens and others.
Su additionally stated that based mostly on its momentum and product pipelines, AMD is “very well-positioned for continued progress in share features.”
AMD can be within the strategy of bolstering its place in AI silicon and programs, with the $4.9 billion acquisition of New Jersey-based ZT Techniques. The transaction was introduced in August and AMD executives stated that it stays on-track to shut within the first half of 2025. Su added that AMD has acquired constructive suggestions from clients as a result of the ZT acquisition will allow hyperscalers to “quickly deploy AMD AI infrastructure at scale and gives OEMs and ODMs with optimized board and module designs for a variety of differentiated enterprise options.”
Su additionally stated that AMD has “constructed important momentum throughout our knowledge heart AI enterprise with deployments growing throughout an increasing set of cloud, enterprise and AI clients.” Subsequently, AMD expects its income from knowledge heart GPUs to exceed $5 billion this 12 months; 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 stage … we really feel superb concerning the market from all the pieces that we see.”
AMD did see decreases in two of its enterprise segments: Gaming revenues have been down practically 70% year-on-year, and its embedded section 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.
