AMD reported better-than-expected revenue and profit for the fourth quarter of 2024. The company’s revenue was $7.66 billion, surpassing the expected $7.53 billion. Adjusted earnings per share were $1.09, slightly higher than the anticipated $1.08.
Despite the positive overall results, AMD’s data center sales fell short of estimates. While data center revenue increased by 69% year-over-year to $3.86 billion, it was below the predicted $4.14 billion. For the full year, the data center division’s revenue grew by 94% to $12.6 billion, with $5 billion coming from Instinct GPUs for AI.
Lisa Su, AMD’s CEO, expressed confidence in the company’s future during an earnings call. She stated that AMD expects “strong double-digit percentage revenue and EPS growth” in 2025.
Amd reports mixed performance across segments
Su emphasized that AMD is on a “steep long-term growth trajectory” and aims to scale its data center AI franchise to tens of billions of dollars in annual revenue in the coming years. In other segments, AMD’s client revenue, which includes chips for PCs, laptops, and other individual computers, increased by 58% year-over-year to $2.3 billion. The company reported strong demand for both desktop and mobile computer chips.
However, AMD’s gaming segment saw a decline, with GPU revenue falling by 59% to $563 million. The company remains the second-largest producer of GPUs for gaming, behind Nvidia. AMD’s embedded chip division generated $923 million in sales, a decrease of 13% from the previous year.
Looking ahead, AMD forecasts sales of $7.1 billion for the first quarter of 2025, plus or minus $300 million, and projects its gross margin to be around 54%. Analysts had anticipated first-quarter revenue guidance of $7 billion. Despite the mixed results, AMD remains optimistic about its future growth prospects, particularly in the data center and AI markets.
