Advanced Micro Devices, Inc. ( (AMD) ) has realeased its Q3 earnings. Here is a breakdown of the information Advanced Micro Devices, Inc. presented to its investors.
Advanced Micro Devices, Inc. (AMD) is a leading semiconductor company specializing in high-performance computing, graphics, and visualization technologies. The company is known for its innovative products, such as processors and graphics cards, catering to a diverse range of sectors including data centers, gaming, and embedded systems.
In its third quarter of 2024, AMD reported robust financial results with a record revenue of $6.8 billion, a notable increase driven by strong sales in its EPYC and Instinct data center products, as well as significant demand for Ryzen PC processors. The company achieved a gross margin of 50% and a net income of $771 million, with earnings per share reaching $0.47.
Key highlights from the earnings report include a significant year-over-year revenue increase of 18%, with the Data Center segment alone experiencing a 122% growth due to the successful ramp-up of AMD Instinct GPUs and EPYC CPUs. Meanwhile, the Client segment saw a 29% increase in revenue, attributed to the high demand for the ‘Zen 5’ Ryzen processors. However, the Gaming segment faced a 69% decline year-over-year due to decreased semi-custom revenue.
Additionally, AMD continues to expand its AI capabilities with new product launches and strategic acquisitions, notably completing the purchase of Silo AI to enhance AI model development on its hardware. The company also announced plans to acquire ZT Systems to bolster its data center AI systems, positioning itself for future growth.
Looking ahead, AMD projects continued revenue growth with an expected fourth-quarter revenue of approximately $7.5 billion, representing a 22% increase year-over-year. The company’s focus remains on capitalizing on opportunities in the data center, client, and embedded businesses, driven by the increasing global demand for advanced computing solutions.
