Advanced Micro Devices reported revenue of $7.658 billion for the fourth quarter, up 24% from a year ago. But AMD’s stock price fell in after-hours trading to $113.66, down 4.89%.
Net income was $482 million for the fourth quarter ended December 31, down 28% from $667 million a year earlier.
AMD saw data center segment revenue of $3.9 billion in the quarter, up 69% from a year ago. It was driven by record Epyc CPU and Instinct GPU revenues — and the demand is being driven by the rapid adoption of AI. For 2024, data center segment revenue was a record $12.6 billion, an increase of 94% compared to the prior year, driven by growth in both AMD Instinct and Epyc processors.
Client revenue in the quarter was $2.3 billion, up 58% from a year earlier. AMD itself expected overall Q4 to come in at $7.5 billion in revenue, plus or minus $300 million. Back in November, AMD announced that it was laying off 4% of its staff, or about 1,000 people.
The gaming segment saw revenue of $563 million, down 58% from a year ago due to lower semi-custom revenue. That revenue mainly comes from sales from Xbox and PlayStation game console revenues.
Embedded segment revenue of $923 million, down 13% from a year ago as customers continued to normalize inventory levels.
For the first quarter of 2025, AMD expects revenue to be approximately $7.1 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 30% and a sequential decline of approximately 7%. Non-GAAP gross margin is expected to be approximately 54%.
“2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” said AMD CEO Lisa Su, in a statement. “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.”
“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,” said AMD CFO Jean Hu, in a statement.
As noted, AMD laid off about 1,000 of its 26,000 employees starting in November. That was about 4% of its staff. AMD’s own layoffs come at a time when AMD has been soundly beating Intel in the x86 processor market. But AMD has also been second in the transition from graphics processing units (GPUs) to AI accelerators in competition with AI chip market giant Nvidia.
But Mercury Research reports that AMD’s Q4 share of processors against Intel is 34% now, up dramatically from years ago.
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