AMD’s Q4 revenue hits $7.66B, up 24% but stock falls

Advanced Micro Devices reported revenue of $7.658 billion for the fourth quarter, up 24% from a year ago. But AMD’s stock price fell in after-hours trading to $113.66, down 4.89%.

Net income was $482 million for the fourth quarter ended December 31, down 28% from $667 million a year earlier.

AMD saw data center segment revenue of $3.9 billion in the quarter, up 69% from a year ago. It was driven by record Epyc CPU and Instinct GPU revenues — and the demand is being driven by the rapid adoption of AI. For 2024, data center segment revenue was a record $12.6 billion, an increase of 94% compared to the prior year, driven by growth in both AMD Instinct and Epyc processors.

Exiting 2024, there are more than 450 Epyc platforms available from the leading server OEMs and ODMs, including more than 120 “Turin” platforms that went into production in the fourth quarter from Cisco, Dell, HPE, Lenovo, Supermicro and others.

“2024 was an outstanding year as we accelerated our AI hardware roadmap to deliver an annual cadence of new Instinct accelerators, expanded our ROCm software suite with significant uplifts in inferencing and training performance, built strong customer relationships with key industry leaders and delivered greater than $5 billion of data center AI revenue for the year,” Su said.

In cloud, AMD exited 2024 with well over 50% share at the majority of the largest hyperscale customers.

“Hyperscaler demand for EPYC CPUs was very strong, driven by expanded deployments powering both their internal compute infrastructure and online services,” Su said. “Public cloud demand was also very strong with the number of Epyc instances increasing 27% in 2024 to more than 1,000.

AWS, Alibaba, Google, Microsoft, and Tencent launched more than 100 AMD general purpose
and AI instances in the fourth quarter alone.

Client revenue in the quarter was $2.3 billion, up 58% from a year earlier. AMD itself expected overall Q4 to come in at $7.5 billion in revenue, plus or minus $300 million. Back in November, AMD announced that it was laying off 4% of its staff, or about 1,000 people.

In clients, Su said AMD saw market share gains for the fourth straight quarter. She siad the desktop channel sell-out in the fourth quarter in multiple regions as Ryzen dominated the bestselling CPU lists at many retailers globally, exceeding 70% share at Amazon, Newegg, Mindfactory and numerous others over the holiday period.

Looking into 2025, Su said AMD is planning for the PC total available market (TAM) to grow by a mid-single digit percentage year-on-year.

“Based on the breadth of our leadership client CPU portfolio and strong design win momentum, we believe we can grow client segment revenue well ahead of the market,” she said.

The gaming segment saw revenue of $563 million, down 58% from a year ago due to lower semi-custom revenue. That revenue mainly comes from sales from Xbox and PlayStation game console revenues.

As for gaming, Su said in the call that revenue declined 59% year-over-year to $563 million because semi-custom sales declined as expected as Microsoft and Sony focused on reducing channel inventory.

“Overall, this console generation has been very strong, highlighted by cumulative unit shipments
surpassing 100 million in the fourth quarter,” she said. “Looking forward, we believe channel inventories have now normalized, and semi-custom sales will return to more historical patterns in 2025.”

And in gaming graphics on the PC, Su said revenue declined year-over-year as AMD accelerated channel sell-out in preparation for the launch of our next-gen Radeon 9000 series GPUs.

“Our focus with this generation is to address the highest volume portion of the enthusiast gaming market with our new RDNA 4 architecture,” Su said. “RDNA 4 delivers significantly better ray tracing performance and adds support for AI-powered upscaling technology that will bring high-quality 4K gaming to mainstream players when the first Radeon 9070 series GPUs go on sale in early March.”

Embedded segment revenue of $923 million, down 13% from a year ago as customers continued to normalize inventory levels.

For the first quarter of 2025, AMD expects revenue to be approximately $7.1 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 30% and a sequential decline of approximately 7%. Non-GAAP gross margin is expected to be approximately 54%.

“2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” said AMD CEO Lisa Su, in a statement. “Data Center segment annual revenue nearly doubled as Epyc processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue. Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing.”

In an analyst call, Su said, “2024 was a transformative year for AMD. We successfully established our multibillion-dollar data center AI franchise, launched a broad set of leadership products and gained significant server and PC market share. As a result, we delivered record annual revenue, grew net income 26 percent for the year and more than doubled free cash flow from 2023.”

She added that the data center segment contributed roughly 50% of annual revenue as Instinct and Epyc processor adoption expanded significantly with cloud, enterprise and supercomputing customers. Q4 results were driven by data center and client segment growth — both grew at a double-digit percentage.

On a full-year basis, annual revenue grew 14% to $25.8 billion as Data Center revenue nearly doubled and Client segment revenue grew 52%, more than offsetting declines in the gaming and embedded segments.

“We closed 2024 with a strong fourth quarter, delivering record revenue up 24% year-over-year, and accelerated earnings expansion while investing aggressively in AI and innovation to position us for long-term growth and value creation,” said AMD CFO Jean Hu, in a statement.

As noted, AMD laid off about 1,000 of its 26,000 employees starting in November. That was about 4% of its staff. AMD’s own layoffs come at a time when AMD has been soundly beating Intel in the x86 processor market. But AMD has also been second in the transition from graphics processing units (GPUs) to AI accelerators in competition with AI chip market giant Nvidia.

But Mercury Research reports that AMD’s Q4 share of processors against Intel is 34% now, up dramatically from years ago.

Su said AMD closed a record $14 billion of design wins in 2024, up more than 25% year-over-year as customer adoption of the industry-leading adaptive computing platforms expands and AMD won
large, new embedded processor designs.

Thanks to Epyc and Ryzen processors, AMD expects to continue gaining market share throughout the year.

“For 2025, we expect the demand environment to strengthen across all of our businesses, driving strong growth in our data center and client businesses and modest increases in our gaming and embedded businesses,” Su said. “Against this backdrop, we believe we can deliver strong double digit percentage revenue and EPS growth year-over-year.”

Su mentioned DeepSeek, the Chinese-made AI model that can with minimal use of GPUs. That resulted in a crash in tech stocks, including Nvidia’s stock price in particular.

“Looking further ahead, the recent announcements of significant AI infrastructure investments like Stargate and latest model breakthroughs from DeepSeek and the Allen Institute highlight the incredibly rapid pace of AI innovation across every layer of the stack, from silicon, to algorithms, models, systems and applications,” Su said. “These are exactly the types of advances we want to see as the industry invests in increased compute capacity while pushing the envelope on software innovation to make AI more accessible and enable breakthrough generative and agentic AI experiences that can run on virtually every
digital device.”

Su said she believes the trends place AMD on a steep long-term growth trajectory, led by the rapid scaling of the data center AI franchise from more than $5 billion of revenue in 2024 to tens of billions of dollars of annual revenue over the coming years.