AMD Reports Second Quarter 2024 Financial Results, Profits Up 17 Percent YoY

[TheLostSwede]

AMD (NASDAQ:AMD) today announced revenue for the second quarter of 2024 of $5.8 billion, gross margin of 49%, operating income of $269 million, net income of $265 million and diluted earnings per share of $0.16. On a non-GAAP(*) basis, gross margin was 53%, operating income was $1.3 billion, net income was $1.1 billion and diluted earnings per share was $0.69.

"We delivered strong revenue and earnings growth in the second quarter driven by record Data Center segment revenue," said AMD Chair and CEO Dr. Lisa Su. "Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors. The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business."




"AMD executed well in the second quarter, with revenue above the midpoint of our guidance driven by strong growth in the Data Center and Client segments," said AMD EVP, CFO and Treasurer Jean Hu. "In addition, we expanded gross margin and delivered solid earnings growth, while increasing our strategic AI investments to build the foundation for future growth."

Segment Summary

• Record Data Center segment revenue of $2.8 billion was up 115% year-over-year primarily driven by the steep ramp of AMD Instinct GPU shipments, and strong growth in 4th Gen AMD EPYC CPU sales. Revenue increased 21% sequentially primarily driven by the strong ramp of AMD Instinct GPU shipments.
• Client segment revenue was $1.5 billion, up 49% year-over-year and 9% sequentially primarily driven by sales of AMD Ryzen processors.
• Gaming segment revenue was $648 million, down 59% year-over-year and 30% sequentially primarily due to a decrease in semi-custom revenue.
• Embedded segment revenue was $861 million, down 41% year-over-year as customers continued to normalize their inventory levels. Revenue increased 2% sequentially.

Recent PR Highlights

• AMD expanded its leadership end-to-end AI solutions portfolio with new CPUs, GPUs, NPUs and software offerings:
  • At Computex 2024, AMD unveiled an expanded AMD Instinct accelerator roadmap, bringing an annual cadence of leadership AI performance and memory capabilities. The roadmap includes the new AMD Instinct MI325X accelerator, planned to be available in Q4 2024, with leadership memory capacity and compute performance. The next generation AMD CDNA 4 architecture, planned for 2025, is expected to bring up to a 35x increase in AI inference performance compared to AMD Instinct accelerators based on AMD CDNA 3.
  • AMD announced the AMD Ryzen AI 300 Series processors, the company's third generation processor for AI PCs, with industry-leading 50 TOPs of AI processing power for Windows Copilot+ PCs. OEMs including Acer, ASUS, HP, Lenovo and MSI unveiled new devices powered by the lineup.
  • AMD and industry leaders announced the Ultra Accelerator Link promoter group which will leverage AMD Infinity Fabric technology to advance open standards-based AI networking infrastructure systems.
  • Cloud providers showcased offerings powered by AMD Instinct MI300X accelerators, with Microsoft announcing the general availability of new Azure ND MI300X V5 instances, which provide leading price/performance for GPT workloads.
  • AMD launched the Radeon PRO W7900 Dual Slot GPU for high-performance AI workstations and expanded AMD ROCm 6.1.3 software support to enhance AI development and deployment with select AMD Radeon desktop GPUs.
• AMD is the partner of choice for many of the most demanding enterprise and HPC workloads:
  • AMD previewed 5th Gen AMD EPYC processors, codenamed "Turin," powered by the new "Zen 5" core architecture and planned to be available in 2H 2024.
  • Oracle announced the HeatWave GenAI solution powered by AMD EPYC CPUs, enabling customers to bring the power of generative AI to their enterprise data without requiring AI expertise.
  • AMD announced the AMD EPYC 4004 Series processors, a new cost-optimized offering that delivers enterprise-class features and leadership performance for small and medium businesses.
  • The latest Top500 List ranked the Frontier supercomputer at Oak Ridge National Lab - powered by AMD EPYC CPUs and AMD Instinct GPUs - the fastest supercomputer in the world for the third year in a row. The list also included three new systems powered by the AMD Instinct MI300A APU at Lawrence Livermore National Laboratories, including the El Capitan Early Delivery System.
• AMD launched new client and graphics offerings, building on its expansive PC portfolio for commercial, consumer and enthusiast users:
  • AMD announced the new AMD Ryzen 9000 Series processors based on the "Zen 5" architecture, delivering leadership performance in gaming, productivity and content creation.
  • AMD unveiled the AMD Ryzen PRO 8040 Series and 8000 Series mobile and desktop processors with cutting-edge performance, manageability and security features for today's enterprises.
• Customers across a broad set of markets are leveraging AMD embedded solutions to power computing and AI at the edge:
  • Sun Singapore announced that it is using AMD Zynq UltraScale+ MPSoC devices to power its large network of AI-based smart parking services, accelerating video analytics and real-time inferencing.
  • Optiver announced that it is using a broad range of AMD high-performance compute engines, including AMD EPYC CPUs, AMD Solarflare ethernet adapters, Virtex FPGAs and Alveo accelerators to power its data center infrastructure, unlocking trading performance and efficiency across more than 100 financial markets.

Current Outlook
AMD's outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.

For the third quarter of 2024, AMD expects revenue to be approximately $6.7 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 16% and sequential growth of approximately 15%. Non-GAAP gross margin is expected to be approximately 53.5%.

View at TechPowerUp Main Site | Source

 

[john_]

Tech shares where dropping like rocks lately because many have started wondering if AI is in fact a bubble and nothing more. AMD's financial report probably will return some of the confidence back. It's important to see of course what Intel will report in 2 days and especially if they will mention or hide in their reports any loses because of the 13th and 14th gen degradation/instability problems.
Then it is Nvidia in the end of August that will give us an indication of whether big wallets still invest heavily in AI spending.

Anyway, still waiting to see if AMD will ever report more than 8 billions in a quarter. They still seem to have a very low ceiling, compared to other companies, no matter their success in some market, they seem to never have success in all markets at once or be able to get any bigger than what they are today.

 

[TheLostSwede]

For those that want an easier overview.

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[damric]

For those that want an easier overview.
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Good to see most of that profit going right back into R&D.

 

[oxrufiioxo]

Damn, gaming segment going right into the toilet..... Nobody buying consoles or GPUs apparently at least from amd.

 

[JohH]

The profits, mainly, aren't from Ryzen or Radeon. They're barely making money in client.

 

[dir_d]

Radeon and Xilinx killing AMD. The Xilinx deal was good on paper because they needed something like this to compete with Intel but it seems like they aren't wining any contracts with the Xilinx portfolio. Radeon i really think they should spin it off at this point to a 3rd party. Intel would probably be best.

 

[mkppo]

Radeon and Xilinx killing AMD. The Xilinx deal was good on paper because they needed something like this to compete with Intel but it seems like they aren't wining any contracts with the Xilinx portfolio. Radeon i really think they should spin it off at this point to a 3rd party. Intel would probably be best.

Xilinx has about 40% operating margin with almost a billion in revenue which isn't bad. Radeon isn't doing well for sure though but spinning it off to Intel or anyone would be foolish.

Plus, why would they spin off a discrete GPU division? They already need the client GPU's for the ton of APU's they sell, so worst case they'll just shut down the discrete GPU division. Selling it to your competitor just doesn't make sense. Plus there are those MSFT and Sony contracts too..

 

[wolf]

• Gaming segment revenue was $648 million, down 59% year-over-year and 30% sequentially primarily due to a decrease in semi-custom revenue.

Yikes, hopefully RDNA4 is a compelling price to performance proposition at launch, and they have enough supply to meet demand if indeed it is positioned to sell like hotcakes. I appreciate that's probably a tough tightrope to walk, so I'd predict more "OK, but not amazing" pricing, that slowly drops and captures buyers as it falls. I hope I'm wrong.

 

[JohH]

Yikes, hopefully RDNA4 is a compelling price to performance proposition at launch, and they have enough supply to meet demand if indeed it is positioned to sell like hotcakes. I appreciate that's probably a tough tightrope to walk, so I'd predict more "OK, but not amazing" pricing, that slowly drops and captures buyers as it falls. I hope I'm wrong.

The gaming division revenue is mainly driven by Sony. Sony was AMD's single largest customer for many years now, totalling 16% of *all* of AMD's revenue. The gaming segment made about 25% of AMD's revenue in 2023.
Edit: RDNA sales are actually up

In gaming graphics, revenue increased year-over-year driven by improved sales of our Radeon 6000 and 7000 series GPUs in the channel.

But compelling pricing doesn't increase revenue for Radeon. It simply causes Nvidia to make a specific Ti/Super SKU to compete with it at $50 more and 90% of buyers pick that instead.

 

[wolf]

But compelling pricing doesn't increase revenue for Radeon. It simply causes Nvidia to make a specific Ti/Super SKU to compete with it at $50 more and 90% of buyers pick that instead

They don't need to outsell Nvidia by large numbers to increase market share and mindshare, they just need a hit card or two that actually nail the launch and stick the landing, rather than launch to a lukewarm reception. if the 7900XT launched at $650 USD instead of 900, even price drops from Nvidia wouldn't completely undo a very well recieved launch and that positivity, especially when layered, starts to add up. Again the problem there is they might not be able to sell enough to meet demand making them another problem. Right now we have no idea what AMD will do next and whether it'll be another 'eh' launch or another banger. Naturally if they had a halo card that toppled Nv that'd go a loooong ass way too. I can appreciate they're in a tough spot, almost that "damned if you do, damned if you don't" sort of space, but they could try something different to RNDA3 (and much of 2) imo.

 

[Daven]

Looks like almost $4B in data center next quarter given the outlook. That will be more than Intel. I can’t believe AMD will be making more than Intel in servers. That’s a huge turnaround.

After hours trading and tomorrow gonna be huge.

 

[JohH]

Looks like almost $4B in data center next quarter given the outlook. That will be more than Intel. I can’t believe AMD will be making more than Intel in servers. That’s a huge turnaround.

After hours trading and tomorrow gonna be huge.

A billion of their data center revenue this quarter is MI300. Most of which would be MI300X. So it's partially that AI bubble boosting their GPGPU sales.

 

[Visible Noise]

AMD is hoping the AI boom doesn’t stop anytime soon. It’s the only place they are making any money.

 

[JohH]

AMD is hoping the AI boom doesn’t stop anytime soon. It’s the only place they are making any money.

They said Epyc is also expanding market share and increasing ASP. It is making a lot of money too.

 

[thesmokingman]

AMD is hoping the AI boom doesn’t stop anytime soon. It’s the only place they are making any money.

We're the beginning of the S curve on AI.

 

[mkppo]

AMD is hoping the AI boom doesn’t stop anytime soon. It’s the only place they are making any money.

They make more revenue from Epyc than MI300's so i'm not sure what you're talking about

 

[thesmokingman]

They make more revenue from Epyc than MI300's so i'm not sure what you're talking about

He just joined, welcome our newest troll.

 

[oxrufiioxo]

They don't need to outsell Nvidia by large numbers to increase market share and mindshare, they just need a hit card or two that actually nail the launch and stick the landing, rather than launch to a lukewarm reception. if the 7900XT launched at $650 USD instead of 900, even price drops from Nvidia wouldn't completely undo a very well recieved launch and that positivity, especially when layered, starts to add up. Again the problem there is they might not be able to sell enough to meet demand making them another problem. Right now we have no idea what AMD will do next and whether it'll be another 'eh' launch or another banger. Naturally if they had a halo card that toppled Nv that'd go a loooong ass way too. I can appreciate they're in a tough spot, almost that "damned if you do, damned if you don't" sort of space, but they could try something different to RNDA3 (and much of 2) imo.

Honestly short of beating nvidia in every metric.. Raster, RT, AI upscaling, efficiency I don't see that happening. I also don't believe Nvidia will fumble things as bad as intel to give them a window big enough to compete beyond 10-20% marketshare they currently seem stuck at for the past 10+ years. The thing probably hurting them is the cost of silicon and only having one real chip maker tsmc without the massive capital nvidia has.

They've likely shifted the majority of their silicon towards Ryzen, Epyc, MI, to care much about how gpu's are doing.

Regardless of how RDNA is priced I can't imagine many people excited about performance we've generally have had for 4 years, maybe if it's 4080 ish for 450 usd lol but I'm not holding my breath.

 

[thesmokingman]

Honestly short of beating nvidia in every metric.. Raster, RT, AI upscaling, efficiency I don't see that happening. I also don't believe Nvidia will fumble things as bad as intel to give them a window big enough to compete beyond 10-20% marketshare they currently seem stuck at for the past 10+ years. The thing probably hurting them is the cost of silicon and only having one real chip maker tsmc without the massive capital nvidia has.

They've likely shifted the majority of their silicon towards Ryzen, Epyc, MI, to care much about how gpu's are doing.

Regardless of how RDNA is priced I can't imagine many people excited about performance we've generally have had for 4 years, maybe if it's 4080 ish for 450 usd lol but I'm not holding my breath.

Yea, Nvidia isn't going anywhere. That said, the market needs AMD to have some success as a counter weight to Nvidia's supplier margins especially on the AI side. And on that point, I feel like gpus have only have a window of a few years before specialized and purpose built chips will takeover. No one can sustain allowing their SUPPLIER, lol SUPPLIER to enjoy 75% margins for long. Also, fwiw, the MI300 is pushing Nvidia to push out Blackwell, which will allow Nvidia to retake the crown, and then rinse repeat. The problem I see for AMD is to ramp production enough to take advantage of its "bargain" pricing proposition.

 

[oxrufiioxo]

Yea, Nvidia isn't going anywhere. That said, the market needs AMD to have some success as a counter weight to Nvidia's supplier margins especially on the AI side. And on that point, I feel like gpus have only have a window of a few years before specialized and purpose built chips will takeover. No one can sustain allowing their SUPPLIER, lol SUPPLIER to enjoy 75% margins for long. Also, fwiw, the MI300 is pushing Nvidia to push out Blackwell, which will allow Nvidia to retake the crown, and then rinse repeat. The problem I see for AMD is to ramp production enough to take advantage of its "bargain" pricing proposition.

They tried the bargain pricing back in 2008 and it didn't work is my guess why they do the slightly worse at a 10% discount vs nvidia.

We are definitely getting to the point of being an afterthought but Nvidia still makes 2.5 billion a quarter in it's gaming segment so that's still not something they likely just want to concede.

 

[R0H1T]

And on that point, I feel like gpus have only have a window of a few years before specialized and purpose built chips will takeover.

They're already doing that with the XDNA engine (Xilinx) on their APU's it's probably only a matter of time they can scale that up massively to do better "AI" than Nvidia. Now again that's on paper, the software side of things still needs a lot of work!

 

[john_]

Radeon and Xilinx killing AMD. The Xilinx deal was good on paper because they needed something like this to compete with Intel but it seems like they aren't wining any contracts with the Xilinx portfolio. Radeon i really think they should spin it off at this point to a 3rd party. Intel would probably be best.

With the industry going bananas about AI, killing the two parts of the company that are the most important parts for AI, Xilinx and Radeon, would have been suicidal.
Xilinx is the reason AMD is ready to offer AI capable APUs and Radeon is the reason AMD is seen as a competitor to Nvidia.

if the 7900XT launched at $650 USD instead of 900

Nvidia would have reacted with a price cut or a product at $700, that would have been worst in everything, except in offering somewhat better RT performance and DLSS support. Consumers would rush to buy the Nvidia product because you know, "AMD products are bad and drivers are trash".

even price drops from Nvidia wouldn't completely undo a very well recieved launch and that positivity

"Thank you AMD for forcing Nvidia to lower prices. RTX 40X0 here I comeeeeeeeeeee!!!!!!!!!! Radeons are for pooooooooooor".
This is happening the last 15+ years. For 25+ years in CPUs too.

They make more revenue from Epyc than MI300's so i'm not sure what you're talking about

Maybe for now, but Instinct revenue can skyrocket if AMD starts becoming a REAL competitor to Nvidia's GPUs. The money is flowing in GPUs and CPUs are becoming secondary in servers. That's why Intel decided to reenter the GPU market, they where seeing that focus was moving away from CPUs to GPUs.

They're already doing that with the XDNA engine (Xilinx) on their APU's it's probably only a matter of time they can scale that up massively to do better "AI" than Nvidia. Now again that's on paper, the software side of things still needs a lot of work!

Hoping to see an FSR Premium version that uses the NPU in both Intel and AMD CPUs/APUs for better quality. That could be enough to make tech press less of a DLSS promoting army. Unfortunately Ryzen 9000 comes without an NPU, which probably means we will have to wait a few years for that, except if we see a hardware FSR version using some new type of hardware in RDNA4 GPUs.

But compelling pricing doesn't increase revenue for Radeon. It simply causes Nvidia to make a specific Ti/Super SKU to compete with it at $50 more and 90% of buyers pick that instead.

I am trying to explain this for years to all those saying that AMD needs to price it's products much lower than Nvidia.

 

[mkppo]

Maybe for now, but Instinct revenue can skyrocket if AMD starts becoming a REAL competitor to Nvidia's GPUs. The money is flowing in GPUs and CPUs are becoming secondary in servers. That's why Intel decided to reenter the GPU market, they where seeing that focus was moving away from CPUs to GPUs.

Oh yeah for sure, I was just responding to his comment about Instinct being the only place AMD is making money which is blatantly false.

 

[thesmokingman]

They tried the bargain pricing back in 2008 and it didn't work is my guess why they do the slightly worse at a 10% discount vs nvidia.

We are definitely getting to the point of being an afterthought but Nvidia still makes 2.5 billion a quarter in it's gaming segment so that's still not something they likely just want to concede.

I'm referring to the AI side where they are a serious bargain at nearly half the price. On the client side yea, Nvidia is the juggernaut.