AMD Chief Executive Officer Lisa T Su has explained how its AI innovations are driving its total revenue in 2024.
AMD has raised its AI chip sales forecast for 2025 to $5 billion as compared with $4.5 billion projected in July. Demand for AI chips from companies like Microsoft and Meta Platforms is high. Supply constraints from manufacturers like TSMC continue to limit AMD’s ability to meet orders.
AMD lags behind Nvidia, which holds around 80 percent of the AI chip market due to its comprehensive AI ecosystem.
AMD expects revenue to be approximately $7.5 billion, plus or minus $300 million, for the fourth quarter of 2024.
Revenue from AMD’s data center business, which includes AI chips, surged by 122 percent to $3.5 billion, driven by increased adoption of its MI300X AI chips, especially in Microsoft and Oracle cloud services.
AMD reported increased market share for its fifth-generation EPYC processors, driven by significant enterprise wins and expanded deployment in cloud services.
Key companies such as Meta Platforms have deployed over 1.5 million EPYC CPUs across their data centers, supporting essential services like Office 365, Zoom, and Netflix.
Cloudflare has chosen Genoa-X processors featuring 3D chiplet stacking technology, which doubles request handling and improves performance per watt by 60 percent.
Public cloud instances powered by EPYC processors surged by 20 percent, exceeding 950, as Microsoft, AWS, and other providers expanded their offerings.
Significant wins in enterprise sectors include partnerships with Adobe, Boeing, and Nestle, contributing to the growing adoption of EPYC CPUs.
Major manufacturers like Dell, HPE, and Lenovo expanded their fourth-generation EPYC platforms by 50, leading to over 200 EPYC solutions optimized for various workloads.
AMD’s Turin architecture has set over 130 performance records across multiple domains, with the full EPYC portfolio accounting for over 500 world records in performance.
More than 130 fifth-generation EPYC enterprise platforms are in development, with Google and Oracle Cloud planning to launch instances early next year.
AMD’s MI300X GPUs are seeing increased adoption, particularly by Microsoft and Meta, for powering AI workloads and services.
Oracle’s Turin instances provide significant improvements in performance per core and memory speeds, highlighting the capabilities of EPYC CPUs for demanding applications.
AMD’s Client segment revenue reached $1.9 billion, marking a 29 percent year-over-year increase, driven by strong demand for the new Zen 5 notebook and desktop processors.
Desktop channel sales experienced significant double-digit growth, largely due to the launch of Ryzen 9000 processors, which enhance productivity, gaming, and content creation performance.
AMD plans to launch Ryzen 9000 X3D processors in November, aiming to further boost gaming performance.
Sales of Ryzen AI 300 Series processors in the mobile segment ramped up significantly, supported by new consumer and commercial notebooks from companies like Acer, HP, Lenovo, and Asus.
AMD secured substantial contracts with major enterprise customers, including AstraZeneca, Bayer, Mazda, Shell, and Volkswagen, in the commercial PC market.
HP and Lenovo are set to triple the number of Ryzen AI Pro platforms they offer in 2024, with AMD expecting over 100 Ryzen AI Pro commercial platforms available next year. This positions AMD well for market share gains as businesses refresh aging Windows 10 PCs ahead of the end of Microsoft support in 2025.
AMD’s Gaming segment revenue fell 69 percent year-over-year to $462 million, primarily due to a decline in semi-custom sales as Microsoft and Sony reduced channel inventory.
Sony announced the PS5 Pro, which will feature significant improvements in graphics, ray tracing performance, and AI-driven upscaling, utilizing a new AMD semi-custom SoC, reinforcing AMD’s multigenerational partnership with Sony.
AMD prepares for a transition to next-gen Radeon GPUs based on RDNA 4 architecture in early 2025. In addition to a strong increase in gaming performance, RDNA 4 delivers significantly higher ray tracing performance and adds new AI capabilities.
AMD’s Embedded segment revenue decreased 25 year-over-year to $927 million. Embedded demand is recovering gradually, led by strength in test and emulation offset by ongoing softness in the industrial market.
Baburajan Kizhakedath
