AMD has posted revenue of $5.5 billion (up 2 percent and down 11 percent q-o-q), gross margin of 47 percent (up 3 ppts), operating income of $36 million (up 125 percent), and net income of $123 million (up 188 percent) for the first quarter of 2024.
“We delivered strong first quarter results with our Data Center and Client segments each growing more than 80 percent driven by the ramp of MI300 AI accelerator shipments and the adoption of our Ryzen and EPYC processors,” said AMD Chair and CEO Dr. Lisa Su.
AMD’s Data Center segment revenue rose 80 percent to $2.3 billion driven by growth in both AMD Instinct GPUs and 4 th Gen AMD EPYC CPUs. Revenue increased 2 percent sequentially driven by the first full quarter of AMD Instinct GPU sales, partially offset by a seasonal decline in server CPU sales.
AMD’s Client segment revenue surged 85 percent to $1.4 billion driven primarily by AMD Ryzen 8000 Series processor sales. Revenue decreased 6 percent sequentially.
AMD’s Gaming segment revenue fell 48 percent and 33 percent sequentially to $922 million due to a decrease in semi-custom revenue and lower AMD Radeon GPU sales.
AMD’s Embedded segment revenue dropped 46 percent and 20 percent sequentially to $846 million as customers continued to manage their inventory levels.
For the second quarter of 2024, AMD expects revenue to be approximately $5.7 billion, plus or minus $300 million.
Lisa Su told analysts that AMD expects AI chip sales of roughly $4 billion for 2024, an increase of $500 million from its prior estimate for the year, Reuters news report said.
Enterprises rushing to adopt generative AI have prioritized spending on AI server chips, hitting demand for traditional server semiconductors, which constitute a large portion of AMD’s revenue. These processors cannot effectively handle the complex tasks associated with AI.
While some of AMD’s CPUs are used in conjunction with AI chips, the ratio is skewed in favor of more advanced AI processors versus CPUs. AMD trails front-runner Nvidia, which has about 80 percent of the booming market for artificial intelligence server semiconductors.
