AMD reported record third-quarter revenue of $13.4 billion on Tuesday, a 45 percent year-over-year increase, as its data center business nearly doubled while its gaming segment cratered.
AMD CFO Jean Hu said, "We expect revenue to be approximately $17 billion, plus or minus 3 percent. The middle point of our guidance represents approximately 66 percent year-over-year revenue growth, primarily driven by the acceleration of our Data Center segment."
The data center division brought in a record $8.5 billion in Q3, up 97 percent from a year earlier. AMD attributed the growth to demand for its EPYC line of enterprise server CPUs and the launch of the Instinct MI450 series GPUs.
The client business, including Ryzen desktop and mobile processors, posted $2.95 billion, a 7 percent year-over-year increase, led by sales of Ryzen mobile chips.
According to the company, Q4 revenue projections are up 27 percent from Q3 results. If both companies meet their Q4 expectations, AMD could surpass Intel's estimated revenue for the first time; Tom's Hardware reported Intel's Q4 guidance places estimates between $15 and $16 billion.
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Year-over-year revenue growth for AMD in Q3 2024, by segment
%
Total includes all AMD business segments. Source: AMD
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Analysis
Why This Matters
AMD's data center growth highlights rising enterprise demand for AI and server hardware.
Surpassing Intel in revenue would be a historic milestone in the semiconductor industry.
The gaming slump may indicate shifting consumer spending patterns.
Background
AMD has been a longtime competitor to Intel in the chip market. In recent years, AMD has gained market share with its EPYC and Ryzen lines, while Intel has faced manufacturing delays.
What to Watch
AMD's Q4 earnings report to see if it surpasses Intel's revenue.
Continued growth in data center segment.
Recovery or further decline in AMD's gaming business.
12 claims in this story checked against 1 source: 11 supported.
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SupportedAMD posted record third-quarter revenue of $13.4 billion.Ars Technica - All content: “AMD reported third-quarter revenues on Tuesday with a record $13.4 billion”
SupportedAMD's data center business nearly doubled.Ars Technica - All content: “as data center business nearly doubled”
SupportedIf both companies meet their Q4 expectations, AMD could surpass Intel in revenue for the first time.Ars Technica - All content: “if both companies land where they expect to at the end of the fourth quarter, AMD would exceed Intel's revenue for the first time in history.”
SupportedAMD's third-quarter revenue increased 45 percent year over year.Ars Technica - All content: “an increase of 45 percent year over year”
SupportedAMD's gaming segment cratered.Ars Technica - All content: “the company's gaming segment cratered.”
Partly supportedCFO Jean Hu said AMD expects approximately $17 billion in revenue, plus or minus 3 percent, and that the midpoint represents approximately 66 percent year-over-year growth, primarily driven by the Data Center segment.Ars Technica - All content: “We expect revenue to be approximately $17 billion, plus or minus 3%. The middle point of our guidance represents approximately 66% year-over-year revenue growth, primarily driven by the acceleration of our Data Center segment.”
SupportedAMD's data center segment posted a record $8.5 billion in revenue, up 97 percent year over year.Ars Technica - All content: “The data center segment of AMD's business was up 97 percent year over year, with a record $8.5 billion.”
SupportedAMD attributed data center growth to demand for EPYC enterprise server CPUs and the launch of Instinct MI450 series GPUs.Ars Technica - All content: “AMD attributes the growth to demand for its EPYC line of enterprise server CPUs, along with the launch of the Instinct MI450 series GPUs .”
SupportedAMD's Client business posted $2.95 billion in revenue, up 7 percent year over year.Ars Technica - All content: “posted $2.95 billion in revenue, up 7 percent year over year.”
SupportedRyzen mobile chip sales led growth in AMD's Client business.Ars Technica - All content: “Sales of AMD Ryzen mobile chips led growth in the Client business”
SupportedAMD said its Q4 revenue projections are up 27 percent from Q3 results.Ars Technica - All content: “AMD says its Q4 revenue projections are up another 27 percent from this quarter's results.”
SupportedTom's Hardware reported that Intel's Q4 guidance puts its revenue estimates between $15 billion and $16 billion.Ars Technica - All content: “As reported by Tom's Hardware , Intel's Q4 guidance places revenue estimates between $15 and $16 billion.”
