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Superior Micro Gadgets reported income of $7.658 billion for the fourth quarter, up 24% from a 12 months in the past. However AMD’s inventory worth fell in after-hours buying and selling to $113.66, down 4.89%.
Internet earnings was $482 million for the fourth quarter ended December 31, down 28% from $667 million a 12 months earlier.
AMD noticed information heart phase income of $3.9 billion within the quarter, up 69% from a 12 months in the past. It was pushed by file Epyc CPU and Intuition GPU revenues — and the demand is being pushed by the fast adoption of AI. For 2024, information heart phase income was a file $12.6 billion, a rise of 94% in comparison with the prior 12 months, pushed by progress in each AMD Intuition and Epyc processors.
Exiting 2024, there are greater than 450 Epyc platforms accessible from the main server OEMs and ODMs, together with greater than 120 “Turin” platforms that went into manufacturing within the fourth quarter from Cisco, Dell, HPE, Lenovo, Supermicro and others.
“2024 was an excellent 12 months as we accelerated our AI {hardware} roadmap to ship an annual cadence of latest Intuition accelerators, expanded our ROCm software program suite with vital uplifts in inferencing and coaching efficiency, constructed robust buyer relationships with key {industry} leaders and delivered better than $5 billion of knowledge heart AI income for the 12 months,” Su stated.
In cloud, AMD exited 2024 with nicely over 50% share on the majority of the biggest hyperscale prospects.
“Hyperscaler demand for EPYC CPUs was very robust, pushed by expanded deployments powering each their inner compute infrastructure and on-line providers,” Su stated. “Public cloud demand was additionally very robust with the variety of Epyc cases growing 27% in 2024 to greater than 1,000.
AWS, Alibaba, Google, Microsoft, and Tencent launched greater than 100 AMD normal objective
and AI cases within the fourth quarter alone.
Shopper income within the quarter was $2.3 billion, up 58% from a 12 months earlier. AMD itself anticipated total This fall to come back in at $7.5 billion in income, plus or minus $300 million. Again in November, AMD introduced that it was shedding 4% of its employees, or about 1,000 individuals.
In purchasers, Su stated AMD noticed market share positive aspects for the fourth straight quarter. She siad the desktop channel sell-out within the fourth quarter in a number of areas as Ryzen dominated the bestselling CPU lists at many retailers globally, exceeding 70% share at Amazon, Newegg, Mindfactory and quite a few others over the vacation interval.
Wanting into 2025, Su stated AMD is planning for the PC whole accessible market (TAM) to develop by a mid-single digit proportion year-on-year.
“Based mostly on the breadth of our management shopper CPU portfolio and robust design win momentum, we imagine we are able to develop shopper phase income nicely forward of the market,” she stated.
The gaming phase noticed income of $563 million, down 58% from a 12 months in the past resulting from decrease semi-custom income. That income primarily comes from gross sales from Xbox and PlayStation sport console revenues.
As for gaming, Su stated within the name that income declined 59% year-over-year to $563 million as a result of semi-custom gross sales declined as anticipated as Microsoft and Sony centered on decreasing channel stock.
“Total, this console era has been very robust, highlighted by cumulative unit shipments
surpassing 100 million within the fourth quarter,” she stated. “Wanting ahead, we imagine channel inventories have now normalized, and semi-custom gross sales will return to extra historic patterns in 2025.”
And in gaming graphics on the PC, Su stated income declined year-over-year as AMD accelerated channel sell-out in preparation for the launch of our next-gen Radeon 9000 sequence GPUs.
“Our focus with this era is to deal with the very best quantity portion of the fanatic gaming market with our new RDNA 4 structure,” Su stated. “RDNA 4 delivers considerably higher ray tracing efficiency and provides assist for AI-powered upscaling expertise that may deliver high-quality 4K gaming to mainstream gamers when the primary Radeon 9070 sequence GPUs go on sale in early March.”
Embedded phase income of $923 million, down 13% from a 12 months in the past as prospects continued to normalize stock ranges.
For the primary quarter of 2025, AMD expects income to be roughly $7.1 billion, plus or minus $300 million. On the mid-point of the income vary, this represents year-over-year progress of roughly 30% and a sequential decline of roughly 7%. Non-GAAP gross margin is predicted to be roughly 54%.
“2024 was a transformative 12 months for AMD as we delivered file annual income and robust earnings progress,” stated AMD CEO Lisa Su, in a press release. “Information Heart phase annual income almost doubled as Epyc processor adoption accelerated and we delivered greater than $5 billion of AMD Intuition accelerator income. Wanting into 2025, we see clear alternatives for continued progress primarily based on the power of our product portfolio and rising demand for high-performance and adaptive computing.”
In an analyst name, Su stated, “2024 was a transformative 12 months for AMD. We efficiently established our multibillion-dollar information heart AI franchise, launched a broad set of management merchandise and gained vital server and PC market share. In consequence, we delivered file annual income, grew web earnings 26 % for the 12 months and greater than doubled free money circulation from 2023.”
She added that the information heart phase contributed roughly 50% of annual income as Intuition and Epyc processor adoption expanded considerably with cloud, enterprise and supercomputing prospects. This fall outcomes have been pushed by information heart and shopper phase progress — each grew at a double-digit proportion.
On a full-year foundation, annual income grew 14% to $25.8 billion as Information Heart income almost doubled and Shopper phase income grew 52%, greater than offsetting declines within the gaming and embedded segments.
“We closed 2024 with a powerful fourth quarter, delivering file income up 24% year-over-year, and accelerated earnings growth whereas investing aggressively in AI and innovation to place us for long-term progress and worth creation,” stated AMD CFO Jean Hu, in a press release.
As famous, AMD laid off about 1,000 of its 26,000 workers beginning in November. That was about 4% of its employees. AMD’s personal layoffs come at a time when AMD has been soundly beating Intel within the x86 processor market. However AMD has additionally been second within the transition from graphics processing items (GPUs) to AI accelerators in competitors with AI chip market large Nvidia.
However Mercury Analysis studies that AMD’s This fall share of processors towards Intel is 34% now, up dramatically from years in the past.
Su stated AMD closed a file $14 billion of design wins in 2024, up greater than 25% year-over-year as buyer adoption of the industry-leading adaptive computing platforms expands and AMD gained
massive, new embedded processor designs.
Due to Epyc and Ryzen processors, AMD expects to proceed gaining market share all year long.
“For 2025, we count on the demand setting to strengthen throughout all of our companies, driving robust progress in our information heart and shopper companies and modest will increase in our gaming and embedded companies,” Su stated. “In opposition to this backdrop, we imagine we are able to ship robust double digit proportion income and EPS progress year-over-year.”
Su talked about DeepSeek, the Chinese language-made AI mannequin that may with minimal use of GPUs. That resulted in a crash in tech shares, together with Nvidia’s inventory worth particularly.
“Wanting additional forward, the latest bulletins of serious AI infrastructure investments like Stargate and newest mannequin breakthroughs from DeepSeek and the Allen Institute spotlight the extremely fast tempo of AI innovation throughout each layer of the stack, from silicon, to algorithms, fashions, programs and purposes,” Su stated. “These are precisely the varieties of advances we need to see because the {industry} invests in elevated compute capability whereas pushing the envelope on software program innovation to make AI extra accessible and allow breakthrough generative and agentic AI experiences that may run on nearly each
digital machine.”
Su stated she believes the developments place AMD on a steep long-term progress trajectory, led by the fast scaling of the information heart AI franchise from greater than $5 billion of income in 2024 to tens of billions of {dollars} of annual income over the approaching years.
