Advanced Micro Devices, Inc. (NASDAQ: AMD) Q3 2024 Financial Results

Overview

Advanced Micro Devices, Inc. (NASDAQ: AMD) reported strong financial results for Q3 2024, with revenues reaching $6.8 billion, an 18% increase from the previous year, attributable mainly to the Data Center segment's growth of 122% to $3.5 billion fueled by EPYC CPU adoption.

Key Takeaways

• Total Revenue: $6.8 billion (up 18% YoY)
• Data Center Revenue: $3.5 billion (up 122% YoY)
• Client Segment Revenue: $1.9 billion (up 29% YoY)
• Gaming Segment Revenue: $462 million (down 69% YoY)
• Embedded Segment Revenue: $927 million (down 25% YoY)
• Gross Margin: Improved by 250 basis points to 54%
• Diluted Earnings per Share (EPS): Increased by 31% to $0.92
• Q4 Revenue Projection: Approx. $7.5 billion (up 22% YoY)

Company Outlook

• Continued growth expected in EPYC and Ryzen product lines.
• Acquisition of ZT Systems intended to enhance AI infrastructure capabilities.
• Anticipation for Data Center GPU revenue above $5 billion in 2024.
• Expectation of a 60% annual growth in the AI accelerator market to $500 billion by 2028.

Bearish Highlights

• Significant declines in Gaming and Embedded segments due to reduced inventory and market conditions.

Bullish Highlights

• Strong Data Center performance leads to increased revenue guidance for 2024.
• Supply chain improvements are expected to support growth into 2025.

Q&A Highlights

• Dr. Lisa Su emphasized the strength in the Data Center GPU segment and expected growth contributions from upcoming product launches, including MI325.

InvestingPro Insights

AMD reported strong metrics and substantial market presence with a market capitalization of $241.96 billion. Despite high valuation multiples, recent performance exhibits substantial returns, reinforcing AMD's strategic focus on AI and Data Center capabilities.

Summary

AMD's Q3 2024 results showcase significant revenue growth, primarily from its Data Center products, while facing challenges in Gaming and Embedded segments. Strategic acquisitions and product launches position the company favorably for future growth.