SANTA CLARA, Calif., July 30, 2024 – AMD (NASDAQ: AMD) has announced its impressive financial results for the second quarter of 2024, showcasing significant growth and robust performance across various segments. The company reported a revenue of $5.8 billion, reflecting a gross margin of 49%, operating income of $269 million, net income of $265 million, and diluted earnings per share of $0.16. On a non-GAAP basis, gross margin was 53%, operating income was $1.3 billion, net income was $1.1 billion, and diluted earnings per share were $0.69.
Key Highlights:
- Record Data Center Segment Revenue: AMD’s Data Center segment achieved a record revenue of $2.8 billion, marking a 115% year-over-year increase. This surge was driven by the rapid adoption of AMD Instinct™ GPU shipments and robust sales of 4th Gen AMD EPYC™ CPUs.
- Client Segment Growth: The Client segment reported a revenue of $1.5 billion, up 49% year-over-year, primarily fueled by strong sales of AMD Ryzen™ processors.
- Gaming and Embedded Segments: While the Gaming segment saw a decline with $648 million in revenue, down 59% year-over-year, the Embedded segment generated $861 million, down 41% year-over-year but showing a 2% sequential increase.
Leadership and Strategic Investments:
Dr. Lisa Su, AMD Chair and CEO, emphasized the company’s strong revenue and earnings growth, attributing it to record Data Center segment revenue and accelerated AI business. AMD is well-positioned to drive further growth in the second half of the year with high demand for Instinct, EPYC, and Ryzen processors.
Jean Hu, AMD EVP, CFO, and Treasurer, highlighted the company’s successful execution in Q2, with revenue surpassing guidance expectations. AMD’s expanded gross margin and strategic AI investments are set to bolster future growth.
Recent Innovations and Announcements:
- AI Solutions Portfolio Expansion: At Computex 2024, AMD unveiled its expanded AMD Instinct accelerator roadmap, including the new AMD Instinct MI325X accelerator. The roadmap promises annual leadership in AI performance and memory capabilities.
- New Processor Launches: AMD announced the AMD Ryzen AI 300 Series processors and the AMD Ryzen 9000 Series processors, bringing cutting-edge AI processing power and enhanced performance for gaming, productivity, and content creation.
- Industry Collaborations: Collaborations with cloud providers like Microsoft and partnerships with companies such as Oracle and Sun Singapore demonstrate AMD’s pivotal role in powering advanced AI and enterprise solutions.
Outlook for Q3 2024:
AMD projects a revenue of approximately $6.7 billion for the third quarter of 2024, with a non-GAAP gross margin expected to be around 53.5%. This represents a year-over-year growth of approximately 16% and a sequential growth of 15%.
AMD continues to drive innovation and growth, solidifying its leadership in AI, data center, and client computing solutions. As the company leverages rapid advancements in generative AI and expands its product portfolio, it remains well-positioned to capture significant growth opportunities in the market.
To learn more, AMD will conduct a conference call today at 2:00 p.m. PT (5:00 p.m. ET), accessible via the Investor Relations page on its website at www.amd.com.
