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AMD's Q3 2024 financial results - Data Center revenue up 122%, Gaming revenue down 69%

AMD's Gaming revenue is down almost 70% with razor thin income margins of just 2%, but its Data Center revenue is through the roof.

AMD's Q3 2024 financial results - Data Center revenue up 122%, Gaming revenue down 69%
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TL;DR: AMD's Q3 2024 financial results show an 18% year-over-year growth, driven by a 122% increase in Data Center segment revenue, thanks to strong sales of AMD Instinct GPUs and EPYC CPUs amid the AI boom. The Client segment saw a 29% growth due to Zen 5's launch.

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.

AMD's Q3 2024 financial results - Data Center revenue up 122%, Gaming revenue down 69% 02

"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.

AMD's Q3 2024 financial results - Data Center revenue up 122%, Gaming revenue down 69% 03

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%.

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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.

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NEWS SOURCE:ir.amd.com
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Kosta is a veteran gaming journalist that cut his teeth on well-respected Aussie publications like PC PowerPlay and HYPER back when articles were printed on paper. A lifelong gamer since the 8-bit Nintendo era, it was the CD-ROM-powered 90s that cemented his love for all things games and technology. From point-and-click adventure games to RTS games with full-motion video cut-scenes and FPS titles referred to as Doom clones. Genres he still loves to this day. Kosta is also a musician, releasing dreamy electronic jams under the name Kbit.

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