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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 worth fell in after-hours buying and selling to $113.66, down 4.89%.
Web earnings was $482 million for the fourth quarter ended December 31, down 28% from $667 million a yr earlier.
AMD noticed information middle phase 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 fast adoption of AI. For 2024, information middle phase income was a report $12.6 billion, a rise of 94% in comparison with the prior yr, pushed by development in each AMD Intuition and Epyc processors.
Exiting 2024, there are greater than 450 Epyc platforms out there 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 impressive yr as we accelerated our AI {hardware} roadmap to ship an annual cadence of recent Intuition accelerators, expanded our ROCm software program suite with important uplifts in inferencing and coaching efficiency, constructed robust buyer relationships with key {industry} leaders and delivered better than $5 billion of knowledge middle AI income for the yr,” Su mentioned.
In cloud, AMD exited 2024 with nicely over 50% share on the majority of the biggest hyperscale clients.
“Hyperscaler demand for EPYC CPUs was very robust, pushed by expanded deployments powering each their inner compute infrastructure and on-line companies,” Su mentioned. “Public cloud demand was additionally very robust 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 objective
and 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 general This autumn to return 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 mentioned AMD noticed market share good points 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 mentioned AMD is planning for the PC whole out there market (TAM) to develop by a mid-single digit share year-on-year.
“Based mostly on the breadth of our management consumer CPU portfolio and powerful design win momentum, we imagine we will develop consumer phase income nicely forward of the market,” she mentioned.
The gaming phase noticed income of $563 million, down 58% from a yr in the past attributable to decrease semi-custom income. That income primarily comes from gross sales from Xbox and PlayStation sport console revenues.
As for gaming, Su mentioned 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 targeted on decreasing channel stock.
“Total, this console era has been very robust, highlighted by cumulative unit shipments
surpassing 100 million within the fourth quarter,” she mentioned. “Trying ahead, we imagine channel inventories have now normalized, and semi-custom gross sales will return to extra historic patterns in 2025.”
And in gaming graphics on the PC, Su mentioned income declined year-over-year as AMD accelerated channel sell-out in preparation for the launch of our next-gen Radeon 9000 sequence GPUs.
“Our focus with this era is to handle the very best quantity portion of the fanatic gaming market with our new RDNA 4 structure,” Su mentioned. “RDNA 4 delivers considerably higher ray tracing efficiency and provides help for AI-powered upscaling know-how that may deliver high-quality 4K gaming to mainstream gamers when the primary Radeon 9070 sequence GPUs go on sale in early March.”
Embedded phase income of $923 million, down 13% from a yr in the past as clients continued to normalize stock ranges.
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 development of roughly 30% and a sequential decline of roughly 7%. Non-GAAP gross margin is predicted to be roughly 54%.
“2024 was a transformative yr for AMD as we delivered report annual income and powerful earnings development,” mentioned AMD CEO Lisa Su, in an announcement. “Information Heart phase annual income practically doubled as Epyc processor adoption accelerated and we delivered greater than $5 billion of AMD Intuition accelerator income. Trying into 2025, we see clear alternatives for continued development based mostly on the power of our product portfolio and rising demand for high-performance and adaptive computing.”
In an analyst name, Su mentioned, “2024 was a transformative yr for AMD. We efficiently established our multibillion-dollar information middle AI franchise, launched a broad set of management merchandise and gained important server and PC market share. Consequently, we delivered report annual income, grew web earnings 26 p.c for the yr and greater than doubled free money move from 2023.”
She added that the information middle phase contributed roughly 50% of annual income as Intuition and Epyc processor adoption expanded considerably with cloud, enterprise and supercomputing clients. This autumn outcomes have been pushed by information middle and consumer phase development — each grew at a double-digit share.
On a full-year foundation, annual income grew 14% to $25.8 billion as Information Heart income practically doubled and Shopper phase income grew 52%, greater than offsetting declines within the gaming and embedded segments.
“We closed 2024 with a powerful fourth quarter, delivering report income up 24% year-over-year, and accelerated earnings enlargement whereas investing aggressively in AI and innovation to place us for long-term development and worth creation,” mentioned AMD CFO Jean Hu, in an announcement.
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 large Nvidia.
However Mercury Analysis experiences that AMD’s This autumn share of processors towards Intel is 34% now, up dramatically from years in the past.
Su mentioned 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.
Due to Epyc and Ryzen processors, AMD expects to proceed gaining market share all year long.
“For 2025, we count on the demand atmosphere to strengthen throughout all of our companies, driving robust development in our information middle and consumer companies and modest will increase in our gaming and embedded companies,” Su mentioned. “In opposition to this backdrop, we imagine we will ship robust double digit share income and EPS development 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 worth specifically.
“Trying additional forward, the latest bulletins of serious AI infrastructure investments like Stargate and newest mannequin breakthroughs from DeepSeek and the Allen Institute spotlight the extremely fast tempo of AI innovation throughout each layer of the stack, from silicon, to algorithms, fashions, methods and functions,” Su mentioned. “These are precisely the varieties of advances we wish to see because the {industry} invests in elevated compute capability whereas pushing the envelope on software program innovation to make AI extra accessible and allow breakthrough generative and agentic AI experiences that may run on nearly each
digital machine.”
Su mentioned she believes the traits place AMD on a steep long-term development trajectory, led by the fast 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.
