AMD reports $25.8bn revenue in 2024, Data Center revenue nearly doubles

Overview

AMD closed 2024 with record-breaking financial performance, reporting $7.7bn in Q4 revenue and $25.8bn for the full year. The Data Center segment nearly doubled its revenue, reaching $12.6bn for the year, fueled by EPYC processor adoption and AI-driven AMD Instinct accelerator sales surpassing $5bn.

CEO Dr. Lisa Su highlighted AMD’s AI-driven momentum, stating: “2024 was a transformative year for AMD as we delivered record revenue and strong earnings growth. Looking into 2025, we see clear opportunities for continued expansion based on the strength of our product portfolio and the growing demand for high-performance and adaptive computing.”

Q4 2024 vs. Q4 2023:

Revenue rose to $7.7bn (+24% YoY), driven by strong demand across data center and client segments.
- Data Center segment revenue in the quarter was a record $3.9bn (+69% YoY) primarily driven by the strong ramp of AMD Instinct™ GPU shipments and growth in AMD EPYC™ CPU sales.
- Client segment revenue in the quarter was a record $2.3bn (+58% YoY), primarily driven by strong demand for AMD Ryzen™ processors.
- Gaming segment revenue in the quarter was $563m (-59% YoY), primarily due to a decrease in semi-custom revenue.
- Embedded segment revenue in the quarter was $923m (-13% YoY), as end market demand continues to be mixed.
Gross margin (GAAP) was 51% (+4ppts vs. 2023), reflecting improved product mix.
Net income (GAAP) decreased compared to the same period last year, to a value of $482m (-28% YoY), while Non-GAAP net income was $1.8bn (+42% YoY), impacted by restructuring charges.
GAAP diluted EPS was on the same trend, reaching a value of $0.29 (-29% YoY).
Operating income (GAAP) was $871m (+155% YoY), while Non-GAAP operating income was $2.0bn (+43% YoY), showcasing earnings growth.
Free cash flow for Q4 2024 reached a value almost 5 times higher than the same period last year, with a value of $1.1bn.

Full-Year 2024 highlights:

Total revenue have reached to a value of $25.8bn (+14% vs. 2023), marking a record year for AMD.
- Data Center segment revenue was a record $12.6bn, (+94% YoY), driven by growth in both AMD Instinct and EPYC processors.
- Client segment revenue was a record $7.1bn (+52% YoY), due to strong demand for AMD Ryzen processors in desktop and mobile.
- Gaming segment revenue was $2.6bn (-58% YoY), primarily due to a decrease in semi-custom revenue.
- Embedded segment revenue was $3.6bn (-33% YoY), primarily due to customers normalizing their inventory levels.
GAAP net income experienced a significant increase to the value of $1.6bn (+92% vs. 2023), while Non-GAAP net income recorded a value of $5.4bn (+26% vs. 2023).
GAAP diluted EPS rose to $1.00 (+89% YoY), while Non-GAAP diluted EPS was $3.31 (+25% YoY).
GAAP operating income increased almost 4 times compared to last year, to a value of $1.9bn (+374% YoY), while Non-GAAP operating income grew to $6.1bn (+26% YoY).
Free cash flow have reached to $2.4bn (+114% vs. FY2023), demonstrating strong liquidity.

For 2025 outlook, AMD expects Q1 revenue to reach $7.1bn (+30% YoY), driven by continued strength in AI and data center demand. The company projects a non-GAAP gross margin of 54%, maintaining strong profitability as it expands its AI and high-performance computing portfolio. AI-driven growth will remain a key focus, with increased investment in EPYC CPUs, Instinct GPUs, AI software, and ecosystem development. Additionally, AMD aims to solidify its market leadership in cloud, enterprise, and AI infrastructure, positioning itself for long-term revenue expansion and sustained technological innovation.

AMD’s stock price is hitting record lows for the past year after the results were released, despite significant gains for FY2024. Investor sentiment remains bearish, and the 2024 downtrend continues to deepen, with the price down about 10% since the last report.