AMD Stock Q1 2024 Financial Performance

AMD Q1 2024 Financial Performance

AMD Stock (NASDAQ:AMD) reports a robust revenue of $5.5 billion for the first quarter of 2024, with a gross margin of 47%. Operating profit stood at $36 million, while net income reached $123 million, translating to diluted earnings per share of $0.07. Excluding GAAP calculations, gross profit reached 52%, operating profit hit $1.1 billion, net income totaled $1.0 billion, and diluted earnings per share amounted to $0.62.

Data Centers and Client Segments Surge

The data center and client segments experienced remarkable growth, exceeding 80% year-over-year, attributed to increased shipments of AI accelerators like the MI300 and the adoption of Ryzen and EPYC processors. The widespread integration of AI has surged demand for extensive computational capabilities across diverse markets.

Record-Breaking Data Center Revenue

AMD achieved record quarterly revenue in the data center segment, reaching $2.3 billion, an 80% increase compared to the same period last year. This surge is attributed to the production growth of AMD Instinct™ GPUs and 4th Gen AMD EPYC™ processors. Data center revenue experienced a 2% increase driven by AMD Instinct GPU sales in the first full quarter, partially offsetting seasonal declines in server processor sales.

Client Segment Revenue

Revenue in the client segment amounted to $1.4 billion, marking an 85% increase compared to the same period last year, primarily due to sales of AMD Ryzen™ 8000 series processors. However, revenue decreased by 6% sequentially.

Gaming Segment Performance

Gaming segment revenue totaled $922 million, decreasing by 48% year-over-year and 33% sequentially, attributed to reduced revenue from AMD Radeon™ graphics processors.

Embedded Systems Segment

Revenue from the embedded systems segment reached $846 million, declining by 46% year-over-year and 20% sequentially as clients continued to manage their inventory levels.

Expansion in AI Solutions

AMD expanded its AI solutions for cloud computing, enterprises, embedded systems, and PCs:

Lenovo announced the ThinkSystem SR685a V3 server with 8 GPUs and the AMD Instinct MI300X processor, catering to both on-premises AI and public cloud AI services.
Dell Technologies and Supermicro showcased initial results of their AMD Instinct MI300X-based systems.
The AMD AI software ecosystem improved with key optimizations and additional features in the latest AMD ROCm™ 6.1 software package, enhancing support for AI tools, AMD Instinct MI300X solutions, and expanding support for AMD Radeon PRO W7800 and Radeon RX 7900 GRE workstations and desktop GPUs.

Expansion of Ryzen PRO Processors

AMD expanded its lineup of commercial AI processors for PCs, releasing new AMD Ryzen™ PRO processors for laptops and desktops with advanced AI capabilities, computational performance, and enhanced security. HP and Lenovo announced new corporate PCs based on Ryzen PRO 8000 series processors.

Advancing AI PC Innovation

At the “Advancing AI PC Innovation Summit,” AMD and partners demonstrated how AMD integrates new AI technologies. Hardware manufacturers, including Lenovo and HP, showcased over 100 AI solutions available on AMD platforms. AMD anticipates over 150 Ryzen AI applications to be developed by the end of the year.

Versal™ Gen 2 Series Release

AMD introduced new devices in the Versal™ Gen 2 series, including the Versal AI Edge Gen 2 SoC, integrating multiple computing modules on a single chip for highly efficient comprehensive AI-driven embedded systems. Subaru plans to deploy Versal AI Edge Gen 2 for its next-generation EyeSight ADAS technical vision system.

AMD Q2 2024 Outlook

In the second quarter of 2024, AMD Stock expects revenue to reach approximately $5.7 billion, with a margin of around 53%, representing approximately 6% year-over-year growth and 4% sequential growth on average within the revenue range.

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