Revenues from the AMD quarter reach USD 7.66 billion, which is an augment of 24%, but the shares are falling

Advanced micro devices recorded revenues of $ 7.658 billion in the fourth quarter, which is an augment of 24% than a year ago. But the price of AMD shares dropped after hours to trade to USD 113.66, which is a 4.89%decrease.

Net income amounted to USD 482 million for the fourth quarter ended on December 31, which is 28% of USD 667 million a year earlier.

AMD recorded the data of the data center segment of $ 3.9 billion in this quarter, which is an augment of 69% than a year ago. It was powered by record revenues from the EPYC processor and instinct GPU income – and demand is powered by the rapid adoption of artificial intelligence. In the case of 2024, the revenues of the data centers segment were record -breaking $ 12.6 billion, which is an augment of 94% compared to the previous year, driven by the augment in both AMD instinct and EPYC processors.

Starting from 2024, there are over 450 EPYC platforms from leading OEM producers and renewal servers, including over 120 “Turin” platforms, which in the fourth quarter took place in production from Cisco, Dell, HPE, HPE, Lenovo, Supermicro and others.

“2024 was an outstanding year because we accelerated our AI road map to ensure the annual term of modern accelerators’ instincts, we have expanded our ROCM software package with significant increases in the field of application and training, built robust relationships with customers with key industry leaders and we delivered over 5 USD billions income from the data center for a year – said Su.

At Cloud AMD, 2024 left with the participation of over 50% in most Hyerscale’s largest customers.

“The demand of Hiperccalera for EPYC processors was very strong, powered by extended implementation supplying both internal computing infrastructure and online services,” said SU. “The demand for a public cloud was also very robust, and the number of EPYC cases increased by 27% in 2024 to over 1000.

Aw
I instances AI in the fourth quarter alone.

Customer revenues in this quarter amounted to $ 2.3 billion, which is an augment of 58% compared to the previous year. AMD himself expected that the overall quarter would amount to $ 7.5 billion in plus or minus $ 300 million. In November, AMD announced that it slows down 4% of its employees, or about 1000 people.

At Su clients, AMD said that AMD has noted an augment in market share for the fourth quarter in a row. She sold out the computer channel in the fourth quarter in many regions, when Ryzen dominated the best -selling lists of processors in many retailers around the world, exceeding 70% of participation in Amazon, Newgg, Mindfactory and many others during the holiday season.

Looking at 2025, SU said that AMD is planning that the total available PC (there) will develop by an average number from year to year.

“Based on the width of our portfolio of the leadership client processor and a strong design of design, we believe that we can increase the revenues from the customer segment significantly in front of the market,” she said.

In the segment of revenue games of $ 563 million, which is a 58% decrease compared to the year, due to the lower semi-revenue revenues. These revenues are mainly from sales from Xbox and PlayStation Game Console.

As for the game, SU said in the call that revenues dropped by 59% year on year to 563 million dollars, because the semi-execution sales dropped as expected, because Microsoft and Sony focused on reducing channel stocks.

“In general, the console generating was very strong, emphasized by cumulative unit shipments
exceeding 100 million in the fourth quarter – she said. “Looking to the future, we believe that the reserves of the channels have normalized, and the semi-unnecessary sales will return to more historical patterns in 2025.”

Built -in segment revenues in the amount of USD 923 million, which is 13% compared to the year of the year, because customers continued to normalize inventory levels.

In the first quarter of 2025, AMD expects that revenues will amount to approximately USD 7.1 billion plus or minus USD 300 million. In the middle of the revenue range point, this is an augment of about 30% from year to year, and a sequential decrease by about 7%. It is expected that the gross margin without GAAP will be about 54%.

“2024 was a transformation year for AMD, because we provided record annual revenues and a strong increase in earnings,” said the general director of AMD Lisa Su. “Annual revenues from the data center segment almost doubled when the process was accelerated to the acceptance of the EPYC processor and we delivered over $ 5 billion in revenues from the AMD instinct. Looking at 2025, we see clear opportunities for further development based on the strength of our product portfolio and growing demand for high -performance and adaptive calculations. “

In an interview with SU analyst, he said: “2024 was a transformation year for AMD. We successfully established our AI Center Data Center franchise, launched a wide set of leadership products and gained a significant share in the PC servers and computers market. As a result, we provided record annual revenues, increased net income by 26 percent during the year and more than twice the cash flows from 2023. “

She added that the data center segment contributed to about 50% of annual revenues, because the adoption of the EPYC instinct and processor increased significantly about clients in cloud, enterprise and supercomputer. The results of the quarter were based on the augment in data and the customer segment-the one grew with a two-digit percentage.

In the full year, annual revenues increased by 14% to $ 25.8 billion, because revenues from the data center almost doubled, and the revenues from the customer segment increased by 52%, more than balance of declines in games and built -in segments.

“We closed 2024 with a strong fourth quarter, providing record revenues by 24% year -on -year, and we accelerated the expansion of earnings, while aggressively investing in artificial intelligence and innovations to set us in the field of long -term growth and value creation,” said AMD CEO Jean Hu, in a statement.

As mentioned, AMD has released about 1000 out of 26,000 employees from November. It was about 4% of his employees. AMD exemptions appear at a time when AMD strongly overcomes Intel on the X86 processor market. But AMD was also second in the transition from graphic processing (GPU) units to AI accelerators in competition with the AI ​​Chip Nvidia market giant.

But Mercury Research reports that AMD’s participation in the first quarter of processors against Intel is currently 34%, dramatically upwards.

Su said that AMD closed a record won of $ 14 billion in 2024, over 25% year -on -year with the expansion of customers leading in the adaptive computer platform industry, and AMD won
Gigantic, modern built -in processors designs.

Thanks to EPYC and Ryzen AMD processors, he is still expecting to gain market share throughout the year.

“In 2025, we expect that the demand environment will strengthen in all our companies, increasing the strong growth of our data centers and clients and a modest growth of our games and built -in companies,” said SU. “We think that against this background we can provide strong double revenues from a double digit and EPS growth every year.”

SU mentioned Deepseek, the Chinese AI model, which can with minimal exploit of the GPU. This caused a failure of technological actions, in particular the price of NVIDIA shares.

“Looking further, the latest classifieds of significant AI infrastructure investments, such as Stargate and the latest breakthrough of Deepseek and the Allen Institute, emphasize the extremely fast pace of AI innovation in each stack layer, from silicon, algorithms, models, systems and systems and applications,” said SU. “These are exactly the types of progress that we want to see, because the industry invests in increased computing capacity, while pushing the envelope for software innovation, so that AI is more accessible and enable a breakthrough generative and agency AI impressions, which can be operated by virtually everyone
digital device. “

SU said that she believed that trends on a steep long -term growth trajectory, directed by brisk scaling of a data center franchise from over $ 5 billion of revenues in 2024 to tens of billions of dollars of annual revenues in the coming years.

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