AMD has beaten analyst revenue and EPS estimates with its recent Q2 2024 earning report, with $5.8 billion in revenue, beating analysts' expectations of $5.72 billion.
One of the biggest highlights is that the AI division within AMD helped expand Data Center revenue by 115% annually, with Data Center revenue operating income increasing 405% annually. These huge leaps in income helped the massive slump that the gaming and embedded businesses divisions are going through right now, with gaming revenue down a shocking 59% annually with just $648 million for Q2 2024.
AMD Chair and CEO Dr. Lisa Su, said: "We delivered strong revenue and earnings growth in the second quarter driven by record Data Center segment revenue. Our AI business continued accelerating and we are well positioned to deliver strong revenue growth in the second half of the year led by demand for Instinct, EPYC and Ryzen processors. The rapid advances in generative AI are driving demand for more compute in every market, creating significant growth opportunities as we deliver leadership AI solutions across our business".
AMD Q2 2024 segment summary:
- Record Data Center segment revenue of $2.8 billion was up 115% year-over-year primarily driven by the steep ramp of AMD Instinct™ GPU shipments, and strong growth in 4th Gen AMD EPYC™ CPU sales. Revenue increased 21% sequentially primarily driven by the strong ramp of AMD Instinct GPU shipments.
- Client segment revenue was $1.5 billion, up 49% year-over-year and 9% sequentially primarily driven by sales of AMD Ryzen™ processors.
- Gaming segment revenue was $648 million, down 59% year-over-year and 30% sequentially primarily due to a decrease in semi-custom revenue.
- Embedded segment revenue was $861 million, down 41% year-over-year as customers continued to normalize their inventory levels. Revenue increased 2% sequentially.
