Advanced Micro Devices, Inc. (AMD) recently held its Q4 earnings call. The company reported record annual revenue of $25.8 billion, a 14% increase from the previous year.
This growth was driven by gains in the data center and client segments. The data center segment revenue surged 69% year-over-year to a record $3.9 billion. The adoption of EPYC CPUs and MI300X deployments with cloud partners fueled this growth.
AMD’s data center AI business generated over $5 billion in revenue for the year. In the client segment, AMD saw revenue increase by 58% year-over-year to a record $2.3 billion. Strong demand for Ryzen processors and record OEM PC sell-through contributed to this growth.
AMD’s gross margin expanded by 300 basis points to 54%. Earnings per share grew 25% year-over-year.
amd’s record-breaking annual revenue
This demonstrates strong operating leverage and efficient management. However, AMD’s gaming segment faced challenges, with revenue declining 59% year-over-year to $563 million. This drop was attributed to decreased semi-custom sales and an accelerated sellout before new GPU launches.
The embedded segment also experienced a revenue decline of 13% year-over-year to $923 million due to mixed demand across markets. AMD’s forward-looking guidance remains optimistic. The company expects double-digit revenue and EPS growth in 2025.
For the first quarter, AMD projects revenue of $7.1 billion, a 30% year-over-year increase despite a 7% sequential decrease due to seasonality. The data center segment is poised for continued growth, driven by new product introductions like the MI350 series GPUs and a focus on AI. AMD Chair and CEO Dr.
Lisa Su said, “2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth. Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing.”