Advanced Micro Devices (AMD) has reported its financial results for the third quarter of 2024, posting revenues of $6.8 billion, an 18% increase compared to the same period last year. This growth has been attributed to strong demand for its data centerA data center or data processing center (DPC) … products, particularly the EPYC processors and Instinct accelerators, as well as the success of its Ryzen processors in the consumer market. The company also achieved a gross margin of 50%, with an operating income of $724 million and a net income of $771 million.
According to AMD CEO Dr. Lisa Su, these results reflect an “insatiable” demand for computing power, particularly in the data center, client, and embedded systems segments. “We are seeing significant growth opportunities across our portfolio, driven by robust demand in the data center and consumer markets,” she stated. AMD is also anticipating a record close for 2024, thanks to sustained growth in these segments.
A quarter of achievements in data centers and clients
AMD’s data center segment revenues reached $3.5 billion, a remarkable 122% year-over-year increase. This growth was led by a rise in shipments of Instinct accelerators and EPYC processors, designed to handle the computing demands of large corporations and artificial intelligence applications. The company emphasized the importance of these products for its strategic partners, such as Google Cloud, HPE, and Oracle Cloud Infrastructure, who have adopted the AMD Instinct MI300X accelerators and the ROCm platform, expanding large-scale AI capabilities.
The client segment, which includes the Ryzen processor lines, also experienced significant growth, generating $1.9 billion in revenue. This 29% increase compared to the same quarter last year was primarily driven by strong demand for Ryzen processors based on the “Zen 5” architecture, which offers improved performance and energy efficiency for consumer devices and enterprise applications.
AMD’s innovation and acquisition strategy
In line with its expansion vision, AMD announced the acquisition of ZT Systems, a provider of computing infrastructure and artificial intelligence systems, to strengthen its offering in the data center segment and accelerate the adoption of its scalable systems. This strategic purchase is expected to close in the first half of 2025, pending regulatory approval. Additionally, AMD completed the acquisition of Silo AI, focused on accelerating the development of artificial intelligence models tailored to its hardware, reinforcing its commitment to leading AI solutions across multiple industries.
AMD has also expanded its product portfolio with launches in emerging sectors. These include the EPYC Embedded 8004 processors, designed to optimize performance in embedded systems and critical applications, as well as the Alveo UL3422 accelerator card for low-latency financial operations and the Artix UltraScale+ XA AU7P FPGA chip, which addresses the demand for solutions in the automotive sector.
Outlook for the fourth quarter and expectations for 2024
AMD has projected revenues for the fourth quarter of $7.5 billion, a 22% year-over-year growth. The company estimates that the non-GAAP gross margin will be 54%, driven by a continued increase in demand for its data center and consumer products. These results reflect AMD’s strong position in a highly competitive market, where its focus on innovation, strategic partnerships, and product expansion enables it to solidify its leadership in high-performance computing and artificial intelligence solutions.
With these figures, AMD closes a quarter marked by strong execution and outstanding financial performance, reaffirming its role in the tech sector and its ability to meet global computing needs.