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

Feb 04, 2025 - venturebeat.com
At CES 2025, Jack Huynh showcased AMD's new processors, highlighting the company's focus on AI-driven growth. For Q4 2024, AMD reported a revenue of $7.658 billion, a 24% increase year-over-year, though net income fell by 28% to $482 million. The data center segment saw significant growth, with revenue reaching $3.9 billion, up 69%, driven by Epyc CPU and Instinct GPU sales. Despite these gains, AMD's stock price fell by 4.89% in after-hours trading. The company also faced challenges, including a 58% decline in gaming segment revenue and a 13% drop in embedded segment revenue. AMD laid off 4% of its workforce in November, amidst strong competition with Intel and Nvidia.

For 2024, AMD achieved record data center revenue of $12.6 billion, a 94% increase, and expects Q1 2025 revenue to be around $7.1 billion. CEO Lisa Su emphasized AMD's transformative year and the potential for continued growth in 2025, driven by high-performance computing demand. CFO Jean Hu highlighted the company's strategic investments in AI and innovation. Despite layoffs, AMD's market share against Intel rose to 34%, reflecting its competitive position in the x86 processor market.

Key takeaways:

  • AMD reported a 24% increase in revenue for the fourth quarter, reaching $7.658 billion, despite a 4.89% drop in stock price in after-hours trading.
  • The data center segment saw significant growth, with revenue reaching $3.9 billion in the quarter, driven by record Epyc CPU and Instinct GPU revenues and the rapid adoption of AI.
  • AMD laid off about 4% of its staff, approximately 1,000 employees, in November 2024, despite strong performance in the x86 processor market against Intel.
  • For the first quarter of 2025, AMD expects revenue to be approximately $7.1 billion, with a non-GAAP gross margin of about 54%.
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