AMD has reported its Q3 2024 or third quarter financial results, and as expected, Data Center segment revenue drove the overall year-over-year growth to 18% compared to Q3 2023. With $3.5 billion, AMD's Data Center segment revenue was up 122% compared to Q3 2023, thanks to strong AMD Instinct GPU and AMD EPYC CPU sales. Bolstered, of course, by the AI boom.
"We delivered strong third quarter financial results with record revenue led by higher sales of EPYC and Instinct data center products and robust demand for our Ryzen PC processors," said AMD Chair and CEO Dr. Lisa Su. "Looking forward, we see significant growth opportunities across our data center, client and embedded businesses driven by the insatiable demand for more compute."
Although the response to Zen 5 and the latest Ryzen 9000 Series has been mixed, AMD's Client segment revenue of $1.9 billion represents 29% year-over-year growth attributed to Zen 5's launch - another win. That said, it's a very different story regarding AMD's Gaming segment revenue.
With only $462 million, AMD's Gaming segment revenue was down 69% year-over-year due to a "decrease in semi-custom revenue." This big drop reflects Radeon's continuing loss of market share in the PC space and lower-than-expected Xbox and PlayStation console sales. This figure also dropped AMD's operating income margin for its Gaming segment to a razor-thin 2%.
On the plus side, AMD has RDNA 4 GPUs lined up, which could shake up the midrange market if they hit the right mix of price and performance. Also, the PlayStation 5 Pro will debut this month, which could increase console-related revenue.
Of course, AMD's big revenue driver will continue to be its Data Center segment, led by new products like AMD EPYC 9005 Series processors and AMD Instinct MI325X accelerators. On the Client side, AMD has the highly anticipated Ryzen 9000 X3D chips waiting in the wings.
- Read more: AMD could have a ton of reveals for CES 2025: Strix Halo, RDNA 4 GPUs, new X3D CPUs and more
- Read more: AMD will release its the new Ryzen 7 9800X3D processor on November 7, reviews on November 6
- Read more: AMD Ryzen 7 9800X3D full specs: 8C/16T Zen 5, 120W TDP, 96MB L3 cache, unlocked multiplier
- Read more: AMD claims Radeon has up to 38% more performance than NVIDIA in Call of Duty: Black Ops 6