Advanced Micro Devices Inc
Q4 2024 Earnings
Market Reaction
S&P 500 over the same 30 days: −7.22%.
Did AMD Beat Earnings? Q4 2024 Results
Advanced Micro Devices closed out 2024 on a strong note, posting Q4 revenue of $7.66 billion, a 24.2% increase year over year that edged past the $7.53 billion consensus estimate by 1.76%, while non-GAAP EPS of $1.09 narrowly beat the $1.09 analyst consensus. The headline driver was a near-doubling of Data Center segment revenue to $3.86 billion, fueled by robust AMD Instinct GPU shipments and deepening EPYC CPU adoption across hyperscalers including Microsoft, Google, and AWS, with Instinct accelerator revenue crossing $5.00 billion for the full year. The Client segment added further momentum, reaching $2.31 billion on 58% year-over-year growth tied to strong Ryzen processor demand, even as the Gaming segment retreated 59% to $563.00 million on softer semi-custom volumes. Non-GAAP gross margin held at 54%, reflecting the favorable mix shift toward higher-value segments. Some investors tempered their enthusiasm over AMD's AI GPU growth trajectory relative to peers, a sentiment reflected in analyst fair value reductions following the print. Looking ahead, AMD guided Q1 2025 revenue of approximately $7.10 billion, implying roughly 30% year-over-year growth, with non-GAAP gross margin again targeted at approximately 54%.
- Strong ramp of AMD Instinct GPU shipments driving Data Center revenue growth
- Accelerating EPYC CPU adoption across cloud and enterprise customers
- Strong demand for AMD Ryzen processors in desktop and mobile driving Client segment growth
- Favorable revenue mix shift toward Data Center and Client improving gross margins
- More than $5 billion of AMD Instinct accelerator revenue for full year 2024
“2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth. 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.”
AMD CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2025, AMD expects revenue of approximately $7.1 billion, plus or minus $300 million, representing year-over-year growth of approximately 30% and a sequential decline of approximately 7%. Non-GAAP gross margin is expected to be approximately 54%. Non-GAAP operating expenses are expected to be approximately $2.1 billion, with an effective tax rate of approximately 13% and diluted share count of approximately 1.64 billion shares.
AMD YoY Financials
AMD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.