AMD on Tuesday announced its financial results for the fourth quarter of 2024 and for the whole year. As expected, the company managed to post impressive results driven by its client and datacenter CPUs. Perhaps AMD’s biggest achievement in the quarter is that the company managed to outsell Intel in the datacenter space for the first time in history. Yet, sales of AMD’s datacenter GPUs somewhat disappointed market observers.
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AMD’s revenue in Q4 2024 totaled $7.658 billion, up 24% year-over-year. The company’s gross margin hit 51%, whereas net income was $482 million. On the year basis, 2024 was AMD’s best year ever as the company’s revenue reached $25.8 billion, up 14% year-over-year. The company earned net income of $1.641 billion as its gross margin hit 49%. But while the company’s annual results are impressive, there is something about Q4 results that AMD should be proud of.
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Datacenter business was the company’s primary source of earnings, with net revenue reaching record $3.86 billion in Q4, marking a 69% year-over-year (YoY) increase and a 9% quarter-over-quarter (QoQ) rise. Operating income also saw substantial improvement, surging 74% YoY to $1.16 billion. By contrast, Intel’s datacenter and AI business unit posted $3.4 billion revenue, while its operating income reached $200 million. But while the quarter marked a milestone for AMD, market analysts expected AMD to sell more of its Instinct MI300-series GPUs for AI and HPC.
AMD’s client business unit, which includes CPUs for desktops and laptops, showed exceptional growth in Q4. Net revenue climbed 58% YoY to $2.31 billion and 23% QoQ. However, the standout figure was the 711% year-over-year surge in operating income, reaching $446 million.
Unfortunately for AMD, its gaming business struggled in the fourth quarter, with net revenue declining to $563 million, or 59% less compared to the same timeframe in the previous year. The operating income of the unit plunged 78% year-over-year to just $50 million. The major decline being the result of lower sales of Radeon discrete GPUs as well as system-on-chips for Microsoft’s Xbox and Sony’s PlayStation game consoles.
AMD’s embedded segment saw a moderate decline in the fourth quarter with net revenue falling to $923 million, or by 13% compared to Q4 2023, while operating income dropped 21% to $362 million. On a quarter-to-quarter basis, revenue remained flat, but operating income declined 3%.
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