Advanced Micro Devices (AMD) has revealed its financial performance and main achievements during the second-quarter of 2024.
AMD reported revenue of $5.835 billion (up 9 percent), gross margin of 49 percent, operating income of $269 million, and net income of $265 million.
AMD has achieved data center segment revenue of $2.8 billion (up 115 percent) driven by the ramp of AMD Instinct GPU shipments, and growth in 4th Gen AMD EPYC CPU sales. Revenue rose 21 percent sequentially primarily driven by the strong ramp of AMD Instinct GPU shipments.
AMD has generated client segment (PC chip) revenue of $1.5 billion (up 49 percent) year-over-year primarily driven by sales of AMD Ryzen processors.
AMD, which is among the largest providers of PC chips, benefited from a recovery in the personal computer market after its worst slump in years. Computer makers hope new AI features will revive consumer demand.
The PC business actually is going to do better in second half, especially, typically seasonally, AMD finance chief Jean Hu said.
AMD has generates sales revenue of $648 million (down 59 percent) from gaming segment primarily due to a decrease in semi-custom revenue.
AMD’s embedded segment revenue was $861 million (down 41 percent) as customers continued to normalize their inventory levels.
AMD increased its 2024 forecast for artificial intelligence chip sales by $500 million and said supplies would remain tight through 2025.
The AI chips designed by AMD are largely bought by cloud computing giants.
AMD counts Meta Platforms as a customer. Microsoft launched access to a cluster of AMD chips for AI via its cloud platform earlier this year.
AMD CEO Lisa Su said the company boosted its 2024 AI chip revenue forecast to $4.5 billion from a previous target of $4 billion. The supply of such chips will remain tight through 2025, Su said during a quarterly results conference call late Tuesday.
For the first time its quarterly AI chip revenue – which is largely concentrated in the data center segment – rose above $1 billion.
AMD forecast revenue of $6.7 billion, plus or minus $300 million, for the third quarter.
