AMD reported better-than-expected fourth quarter results as its data center revenue was $3.9 billion, up 69% from a year ago doing to its GPU and server chip demand.
The chipmaker reported fourth quarter earnings of $482 million, or 29 cents a share, on revenue of $7.66 billion, up 24% from a year ago. Non-GAAP earnings for the quarter were $1.09 a share.
Wall Street was expecting AMD to report fourth quarter non-GAAP earnings of $1.09 a share on revenue of $7.53 billion.
For the year, AMD reported earnings of $1.64 billion, or $1 a share, on revenue of $25.78 billion.
As for the outlook, AMD projected first quarter revenue of $7.1 billion, give or take $300 million. At the midpoint, AMD is projecting revenue growth of about 30% from a year ago.
AMD CEO Lisa Su said 2024 was transformative and the data center business is strong. "Data Center segment annual revenue nearly doubled as EPYC processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue. Looking into 2025, we see clear opportunities for continued growth," said Su.
By the numbers:
- AMD reported fourth quarter data center revenue of $3.9 billion due to "the strong ramp of AMD Instinct GPU shipments and growth in AMD EPYC CPU sales." For 2024, AMD reported data center revenue of $12.6 billion, up 94%. The data center unit drove AMD's operating income gains for the fourth quarter and year.
- Client revenue was $2.3 billion, up 58% due to strong demand for Ryzen processors. For 2024, AMD's PC chip business revenue was $7.1 billion, up 52% from a year ago.
- Gaming revenue was $563 million, down 59% from a year ago. Annual revenue for gaming was $2.6 billion.
- Embedded revenue was down 13% from a year ago in the fourth quarter at $923 million. For 2024, embedded revenue was $3.6 billion, down 33% from a year ago.
