AMD posted some better-than-expected Q2 2024 earnings this week, but its gaming business took a rather large 59% revenue drop year-over-year.
During its Q2 2024 earnings report, it was noted that gaming revenues dropped 59%, which covers the Radeon GPU business and semi-custom chips provided by AMD (made by TSMC) to Microsoft for its Xbox Series X/S consoles and Sony for its PlayStation 5 consoles.
Microsoft announced earlier today its Q4 2024 earnings results, with its Xbox sales dropping 42% year-over-year, which brings down AMD's gaming revenue. Radeon sales haven't been anywhere near as strong compared to NVIDIA's Ada-tight grip on the gaming GPU market with its GeForce RTX 40 series GPUs... and RTX 50 series GPUs only months away.
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.
