AMD Reports Fiscal Fourth Quarter and Full Year 2024 Financial Results

[Nomad76]

AMD today announced financial results for the fourth quarter and full year of 2024. Fourth quarter revenue was a record $7.7 billion, gross margin was 51%, operating income was $871 million, net income was $482 million and diluted earnings per share was $0.29. On a non-GAAP basis, gross margin was 54%, operating income was a record $2.0 billion, net income was a record $1.8 billion and diluted earnings per share was $1.09.

For the full year 2024, AMD reported record revenue of $25.8 billion, gross margin of 49%, operating income of $1.9 billion, net income of $1.6 billion, and diluted earnings per share of $1.00. On a non-GAAP basis, gross margin was a record 53%, operating income was $6.1 billion, net income was $5.4 billion and diluted earnings per share was $3.31.

"2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth," said AMD Chair and CEO Dr. Lisa Su. "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 EVP, CFO and Treasurer Jean Hu.

Segment Summary
Data Center segment revenue in the quarter was a record $3.9 billion, up 69% year-over-year primarily driven by the strong ramp of AMD Instinct GPU shipments and growth in AMD EPYC CPU sales.

• 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 segment revenue in the quarter was a record $2.3 billion, up 58% year-over-year primarily driven by strong demand for AMD Ryzen processors.

• For 2024, Client segment revenue was a record $7.1 billion, up 52% compared to the prior year, due to strong demand for AMD Ryzen processors in desktop and mobile.

Gaming segment revenue in the quarter was $563 million, down 59% year-over-year, primarily due to a decrease in semi-custom revenue.

• For 2024, Gaming segment revenue was $2.6 billion, down 58% compared to the prior year, primarily due to a decrease in semi-custom revenue.

Embedded segment revenue in the quarter was $923 million, down 13% year-over-year, as end market demand continues to be mixed.

• For 2024, Embedded segment revenue was $3.6 billion, down 33% from the prior year, primarily due to customers normalizing their inventory levels.

Recent Highlights
AMD continues expanding its partnerships to deliver highly performant AI infrastructure at scale:

• IBM announced plans to deploy AMD Instinct MI300X accelerators to power generative AI and HPC applications on IBM Cloud.
• Vultr and AMD announced a strategic collaboration to leverage AMD Instinct MI300X accelerators and AMD ROCm open software to power Vultr's cloud infrastructure for enterprise AI development and deployment.
• Aleph Alpha announced that it will leverage AMD Instinct MI300 Series accelerators and ROCm software to enable its tokenizer-free LLM architecture, a new approach to generative AI that aims to simplify the development of sovereign AI solutions for governments and enterprises.
• Fujitsu and AMD announced a strategic partnership to develop more sustainable computing infrastructure to accelerate open source AI.
• AMD expanded strategic investments to advance the AI ecosystem and solutions, including investments in LiquidAI, Vultr and Absci.

AMD is accelerating its AI software roadmap to deliver a robust open AI stack for the ecosystem:

• AMD released ROCm 6.3 with numerous performance enhancements enabling faster inferencing on AMD Instinct accelerators as well as additional compiler tools and libraries.
• AMD shared an update on its 2025 plans for the ROCm software stack to enable easier adoption of and improved out of box support for both inferencing and training applications.

Dell and AMD announced that AMD Ryzen AI PRO processors will power new Dell Pro notebook and desktop PCs, bringing exceptional battery life, on-device AI, Copilot+ experiences and dependable productivity to enterprise users. For the first time, Dell will offer a full portfolio of commercial PCs based on Ryzen processors, marking a significant milestone in the companies' collaboration.

AMD expanded its broad consumer and commercial AI PC portfolio:

• New AMD Ryzen AI Max and Ryzen AI Max PRO Series processors deliver workstation-level performance and next-gen AI performance for gaming, content creation and complex AI-accelerated workloads.
• Expanded Ryzen AI 300 and Ryzen AI 300 PRO Series processors bring premium AI capabilities to mainstream and entry-level notebooks, as well as enhanced security, manageability and support for Microsoft Copilot+ experiences tailored for business users.
• Additional Ryzen 200 and Ryzen 200 PRO Series processors offer incredible AI experiences, performance and battery life for everyday users and professionals.
• More than 150 Ryzen AI platforms are expected to be available from leading OEMs this year.

AMD extended its leadership in high performance computing (HPC), enabling the most powerful and many of the most energy efficient supercomputers in the world:

• The El Capitan supercomputer at Lawrence Livermore National Laboratory became the second AMD supercomputer to surpass the exascale barrier, placing #1 on the latest Top500 list.
• The Hunter supercomputer at the High-Performance Computing Center of the University of Stuttgart (HLRS), powered by AMD Instinct MI300A APUs, began service, delivering HPC and AI resources for scientists, researchers, industry and the public sector.
• AMD EPYC processors and AMD Instinct accelerators power many new supercomputing projects and AI deployments, including the Eni HPC 6 system, the University of Paderborn's latest supercomputer and the Sigma2 AS system which is slated to be the fastest system in Norway.

AMD powers incredible experiences for gamers across a broad range of devices:

• At CES 2025, AMD announced new AMD Ryzen 9000X3D, Ryzen Z2 and Ryzen 9000HX processors, extending its leadership in desktop, mobile and handheld gaming.
• AMD shared the latest version of AMD Software: Adrenalin Edition, 24.9.1, continuing to enhance gaming experiences with AMD Fluid Motion Frames 2 and AMD HYPR-RX.

AMD continues to deliver leadership compute performance and capabilities at the edge with an expanded portfolio of solutions:

• New AMD Versal Gen 2 portfolio with next-generation interface and memory technologies for data-intensive applications in the data center, communications, test and measurement and aerospace and defense markets.
• AMD Versal RF Series adaptive SoCs, combining high-resolution radio frequency data converters, dedicated DSP hard IP, AI engines and programmable logic in a single chip.
• Vodafone and AMD announced they are collaborating on mobile base station silicon chip designs to enable higher-capacity AI and digital services.

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 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%.

Details from slide deck follows.


View at TechPowerUp Main Site | Source

 

[Assimilator]

For 2024, Gaming segment revenue was $2.6 billion, down 58% compared to the prior year

Ouch.

 

[wNotyarD]

For 2024, Gaming segment revenue was $2.6 billion, down 58% compared to the prior year, primarily due to a decrease in semi-custom revenue.

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.

Priorities, I guess...

And still, people ask for Dr. Su to resign. Preposterous.

 

[Denver]

The gaming sector's poor financial performance is largely due to consoles nearing the end of their "lifecycle". The Switch is in the same situation—it's natural, as people are already anticipating the next generation of consoles.

 

[Visible Noise]

Ouch.

Don’t worry, someone will be along shortly to tell you this isn’t a bad thing.

And they will ignore the 53% margin because their friend AMD isn’t greedy.

 

[Denver]

Don’t worry, someone will be along shortly to tell you this isn’t a bad thing.

And they will ignore the 53% margin because their friend AMD isn’t greedy.

What does the overall profit margin—encompassing all products and potentially boosted by high-margin EPYC and Instinct—have to do with the profit margin of products targeted at us? The results consistently show that the margin in the client sector remains between 10-20%.

 

[TheinsanegamerN]

What does the overall profit margin—encompassing all products and potentially boosted by high-margin EPYC and Instinct—have to do with the profit margin of products targeted at us?

Well, nvidia's were low 60-62% range, now ~74%, and people wont shut their yaps about "muh nGREEDia muh $500 5090s" so what's good for the goose is good for the gander. Perhaps surprising to some, nobody will call out Ol Greedy AMD. Hmmmm....

The results consistently show that the margin in the client sector remains between 10-20%.

I have no idea what results you are referring to, perhaps you could provide some sources for the client sector being only 10-20%?

 

[Denver]

Well, nvidia's were low 60-62% range, now ~74%, and people wont shut their yaps about "muh nGREEDia muh $500 5090s" so what's good for the goose is good for the gander. Perhaps surprising to some, nobody will call out Ol Greedy AMD. Hmmmm....

I have no idea what results you are referring to, perhaps you could provide some sources for the client sector being only 10-20%?

Full fiscal year: $7B in revenue, but only $897M in profit. What does that tell you? So the operating profit margin for the Client segment is around 12.7%, slightly higher than 10%.
When product prices plummet, it’s not the retailers or AIBs taking the hit—it’s AMD, Banking discounts to liquidate inventory.

I have no doubt that Nvidia enjoys significantly higher margins, as even subpar products like the 4060 Ti manage to retain their price across most markets. It's all about brainwashing > performance.

 

[Philaphlous]

Op margin is pretty nice. Should keep long term investors happy. Short term, affter hours has a pretty significant hit ~10% drop....

Depending on what happens with this trade tariffs stuff...might be some rocky investing for the next 1-2 years....

 

[Nater]

I wonder how much of the "Client" sales are 7800X3D and 9800X3D that should really be moved over to the "Gaming" section.

 

[Visible Noise]

AMD has less gaming sales in a year (including consoles) than Nvidia has in a quarter.

AMD Instinct sales were twice that of gaming.

That all proves AMD doesn’t care about gamers anymore.

Did I do it right?

 

[Hecate91]

AMD has much less sales, much lower margins, but no AMD is the greedy one. The nGreedia copium is very strong and this thread went as well as I expected it to before clicking on it.

 

[Sound_Card]

AMD has much less sales, much lower margins, but no AMD is the greedy one. The nGreedia copium is very strong and this thread went as well as I expected it to before clicking on it.

Don't take this the wrong way, but you and a few others need to stop taking obvious 'bait' from obvious trolls. When you say things like 'Ngreedia', he gets what he wants. One could even make the case that both of you are being insecure. The guy is an obvious troll, just ignore him.

 

[dir_d]

AMD has less gaming sales in a year (including consoles) than Nvidia has in a quarter.

AMD Instinct sales were twice that of gaming.

That all proves AMD doesn’t care about gamers anymore.

Did I do it right?

What are you even talking about. I see you in every thread trying to bash AMD like you get paid for it. AMD obviously focused on the Enterprise market and still had a decent client segment. This shows that gaming is low but investors knew it would be and same with next year until UDNA is out.

 

[Hecate91]

Don't take this the wrong way, but you and a few others need to stop taking obvious 'bait' from obvious trolls. When you say things like 'Ngreedia', he gets what he wants. One could even make the case that both of you are being insecure. The guy is an obvious troll, just ignore him.

Yeah that is a good point, thanks.
Someone else pointed out AMD has a client & gaming revenue of 20% or less, no rationality in arguing who is greedy. I'm just so tired of the mindshare crapping up every AMD related thread.

 

[TheinsanegamerN]

Yeah that is a good point, thanks.
Someone else pointed out AMD has a client & gaming revenue of 20% or less, no rationality in arguing who is greedy. I'm just so tired of the mindshare crapping up every AMD related thread.

Pot calling the kettle black. People like you and Sound Card take every possible chance to cry about nvidia being the one true evil and how consumers are all dumb sheep. It's like clockwork, every time.

Don't take this the wrong way, but you and a few others need to stop taking obvious 'bait' from obvious trolls. When you say things like 'Ngreedia', he gets what he wants. One could even make the case that both of you are being insecure. The guy is an obvious troll, just ignore him.

Pointing out repeating juvenile talking points with no merit isn't trolling.

View attachment 383233

Full fiscal year: $7B in revenue, but only $897M in profit. What does that tell you? So the operating profit margin for the Client segment is around 12.7%, slightly higher than 10%.
When product prices plummet, it’s not the retailers or AIBs taking the hit—it’s AMD, Banking discounts to liquidate inventory.

Interesting. I looked up Nvidia's as well, and while they do not seem to break out the operating income of the gaming division individually like AMD does, their full year revenue for the gaming division is 10.4 billion. So, despite the claims that "nobody buys AMD" It would seem plenty of people are, in fact, buying AMD. And that is with an absolutely disastrous fourth quarter.

This makes margins harder to figure out, they do post these numbers for "graphics", which appears to be professional visualization and automotive mixed together with the gaming division. That comes out to 43% margin, who known how much of that is GPUs. I'd think there's a reason those are all mixed together.

https://s201.q4cdn.com/141608511/files/doc_financials/2024/ar/NVIDIA-2024-Annual-Report.pdf

It also shows their compute division hitting 67.5% margins, compared to AMD's 27.6%. That's despite AMD's revenue increasing 94% and EPYC being a very in demand product. And we know those MI300 accelerators are not sitting on shelves overstocked, that would point to AMD having some severe cost overruns that nvidia doesnt have.

I have no doubt that Nvidia enjoys significantly higher margins, as even subpar products like the 4060 Ti manage to retain their price across most markets. It's all about brainwashing > performance.

Nope. It's not brainwashing, or mindshare, or the hidden soviet agent in your closet. It's always been about having a competitive product. The last time AMD was truly competitive with nvidia across the board was the HD 7970.....in 2012. Arguably in 2014 the hawaii chips were also very competitive.

Since then, it has been rebrands, rehashes, half generations, and slow, hot products. The 300 sereis was rebrand central and the less efficient GCN started looking real bad against maxwell (and my personal theory, pissed of evergreen owners from the old days were not happy with AMD leaving their GPUs half unusable around the same time, and jumped to team green, resulting in maxwell's incredible performance). Polaris left a huge market open with 0 competition and more crucially provided no true upgrade path for 290x owners or 7000 series owners who didnt think the 290x at $300 was a good enough value. The vega 64 was late to market, hot, slow, and MORE expensive then the 1080. Total facepalm. The fury x was an absolute joke. The 5000 series was not feature competitive (no RT, no mesh shaders) and again left the high end empty. rDNA2 was a huge step in the right direction, but it got kneecapped by covid production restrictions and EPYC's success. rDNA3 failed to follow up on rDNA2's improvements, and AMD started playing pricing games to push people up market, while leaving crucial markets like the 7800xt with just....nothing, and the 7600 market with really 0 actual improvement over the more avilable 6600 series.

None of this is nVidias fault. AMD has been pursuing the "premium brand" (lisa's description) label but without the premium features, and aftera decade+ of this type of behavior many in the AMD community are tired of the "just wait (tm)" meme, so they go to team green. If I want a 6800xt replacement, the 7900xtx was good but not fast enough for the $$$, and now the 9000 series will have nothing to offer me, so I get to either wait another 2 years and hope AMD bothers to try with uDNA, or go nvidia.

 

[ThomasK]

Oh well, the naysayers again. Give us all a fucking break, will ya?

 

[Hecate91]

Pot calling the kettle black. People like you and Sound Card take every possible chance to cry about nvidia being the one true evil and how consumers are all dumb sheep. It's like clockwork, every time.

It's quite the opposite, and it's always the same people who quickly jump into AMD threads to shit on AMD without contributing anything to the thread.

Pointing out repeating juvenile talking points with no merit isn't trolling.

The juvenile talking point is coming into this thread and claiming AMD doesn't care about gamers while claiming AMD is more greedy than a multi-trillion dollar company with 70% profit margins.

Interesting. I looked up Nvidia's as well, and while they do not seem to break out the operating income of the gaming division individually like AMD does

Of course Nvidia doesn't, they obfuscate gaming income by calling it "gaming & AI" so they can claim record profits in gaming, even though 80-90% of the revenue went to AI.

None of this is nVidias fault. AMD has been pursuing the "premium brand" (lisa's description) label but without the premium features, and aftera decade+ of this type of behavior many in the AMD community are tired of the "just wait (tm)" meme, so they go to team green. If I want a 6800xt replacement, the 7900xtx was good but not fast enough for the $$$, and now the 9000 series will have nothing to offer me, so I get to either wait another 2 years and hope AMD bothers to try with uDNA, or go nvidia.

Most of it is Nvidia's fault, it is no different than what Intel did to the market for years with market stagnation, underhanded tactics, bribing OEM's, and paying the tech media to promote products. AMD has no chance of becoming a "premium brand" when the competition is anti-consumer and anti-competitive with a near monopoly, and when most consumers will line up to buy the latest team green card without any consideration for an AMD or Intel card.

 

[Visible Noise]

AMD has been pursuing the "premium brand" (lisa's description) label but without the premium features

Remember “Premium VR Experience“?

 

[Imsochobo]

Interesting. I looked up Nvidia's as well, and while they do not seem to break out the operating income of the gaming division individually like AMD does, their full year revenue for the gaming division is 10.4 billion. So, despite the claims that "nobody buys AMD" It would seem plenty of people are, in fact, buying AMD. And that is with an absolutely disastrous fourth quarter.

Redacted a lot to quote the point I'm responding to.

So AMD gaming does mean PS5, Xbox series consoles - And in all likelyness the Lenovo Go, Rog ally and Steamdeck.
Meaning, I really don't think they're generating real revenue with Radeon graphics and seeing the marketshare numbers from etailers and such is at this trend going to hit 1% in many markets..
I understand why, when they're just providing worse value...

 

[Baba]

Ouch.

Glad I sold all my AMD stock prior to this mess. What a ride from $227 down to $108. What moves the stock at earnings is not the actual earnings but forecast. There is nothing on the horizon for AMD in the gaming segment. RDNA is dead. It's still 7% of their revenue like it was in Q3. If you were in charge how much R&D would you dedicate to this segment?

https://www.amd.com/content/dam/amd/en/documents/instinct-business-docs/white-papers/amd-cdna-white-paper.pdf

"AMD RDNA™ is optimized for gaming to maximize frames per second and AMD CDNA is optimized for computing to push the limits of flops per second." So with UDNA, is this going to be stuck in the middle or lean one way or the other? Whatever the outcome as AMD themselves said it, it won't be optimized for frames per second. AMD thought it was a great idea to split them up. Now, it's a great idea to combine them. Maybe someone can explain if it's better to game on CDNA architecture.

 

[igormp]

That all proves AMD doesn’t care about gamers anymore

Tbh, no company does, and I don't blame them for that.

It's quite the opposite, and it's always the same people who quickly jump into AMD threads to shit on AMD without contributing anything to the thread.

It's both, and both keep bickering endlessly in many different threads about their favorite multi-billion company.
I personally find it entertaining lol

 

[Baba]

The gaming sector's poor financial performance is largely due to consoles nearing the end of their "lifecycle". The Switch is in the same situation—it's natural, as people are already anticipating the next generation of consoles.

PS5 PRO just came out last November 4 months ago.

 

[thesmokingman]

AMD has less gaming sales in a year (including consoles) than Nvidia has in a quarter.

AMD Instinct sales were twice that of gaming.

That all proves AMD doesn’t care about gamers anymore.

Did I do it right?

Why has this clown not been banned yet?

 

[Redwoodz]

AMD has less gaming sales in a year (including consoles) than Nvidia has in a quarter.

AMD Instinct sales were twice that of gaming.

That all proves AMD doesn’t care about gamers anymore.

Did I do it right?

Yes you have shilled quite succesfully. Congratulations. You're 5080 is waiting for your $1200.

F.Y.I. You also have proven how short sighted and naive you are. Carry on.