AMD announced its financial results for the fourth quarter of 2024 and all year round. As expected, the company was able to present impressive results driven by its CPUs to customers and data centers.
Probably, AMD’s biggest achievement in the quarter was the fact that the company has surpassed Intel in the Data Centers space for the first time in history. However, GPU sales to AMD data centers have disappointed market observers slightly.
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Financial performance
AMD revenue in Q4 2024 totaled $ 7.658 billion, an increase of 24% year by year. The company’s gross margin reached 51%, while net income was $ 482 million. 2024 was AMD’s best year, with revenue reaching $ 25.8 billion, an increase of 14% year by year.
The net profit obtained was $ 1.641 billion, with the gross margin reaching 49%. But while the company’s annual results are impressive, there is something in the results of the fourth quarter that AMD should be proud.
Growth in the date centers sector
The Data Center business was the company’s main source of revenue, with net revenue reaching the record of $ 3.86 billion in Q4marking an increase of 69% year by year (yoy) and an increase of 9% quarter to quarter (QOQ).
There was also improvement in operating profit, which rose 74% yoy to $ 1.16 billion. In contrast, Intel’s Data Centers Business Unit registered revenue of $ 3.4 billion, while its operating profit reached $ 200 million.
Although the quarter is a milestone for AMD, Market Analysts hoped that AMD would sell more of its GPUs from the Instinct Mi300 to AI and HPC series.
Other segments
AMD’s business unit, which includes desktop and laptop CPUs, showed exceptional Q4 growth. Net revenue rose 58% yoy to $ 2.31 billion and 23% qoq. However, the highlight was the increase of 711% year by year in operating profit, reaching $ 446 million.
Unfortunately for AMD, its game business faced difficulties in the fourth quarter, with net revenue falling to $ 563 million, or 59% less compared to the same period of the previous year.
The unit’s operating profit fell 78% year to year to only $ 50 million. The main reason for the fall was the reduction of discreet GPUS sales, as well as System-on-Chips for Microsoft and PlayStation Xbox game consoles.
At the same time, The incorporated segment of AMD saw a moderate decline in the fourth quarter, with net revenue falling to $ 923 milliona 13% reduction compared to Q4 2023, while operating profit dropped 21% to $ 362 million. Quarter to quarter, revenue remained stable, but operating profit fell 3%.
Source: AMD.
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Source: https://www.adrenaline.com.br/amd/amd-supera-intel-em-vendas-para-data-centers-pela-primeira-vez/
