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Main article: AMD
2024
Revenue growth for the year by 13% to $25.8 billion
- Revenue for 2024 - $25.8 billion, + 13.7% YoY.
- Net profit for 2024 - $1.64 billion, + 92.2% yoy.
- Operating cash flow - for 2024 - $3.04 billion, + 82.4% y/y.
- Net baibek along with dividends - for the entire 2024 - $1.21 billion, compared with 1.26 billion in 2023.
The results are good, the potential is impressive. AMD sees its further development in the creation of "smart" platforms, where AI will become an integral part of the product architecture. The plans include further scaling of RDNA and Zen 5 architectures with an emphasis on parallel computing for AI tasks.
All attention at this time is on the fast-growing and high-margin segment of AI chips, which formed the entire mega success of Nvidia.
The development of artificial intelligence accelerators of the Instinct family is at the center of AMD's strategy for the coming year. The company has unveiled an extended roadmap for AMD Instinct accelerators, which includes the transition to the annual launch cycle of flagship AI accelerators.
In addition to AI accelerators, AMD continues to develop its server line (AMD EPYC 5th generation) with the start of a large-scale implementation from January 2025.
AMD's share of the server CPU market reached 32-33% by the end of 2024 and is expected to grow to 38-39% by the end of 2025, while 10 years ago within zero.
In the client segment, AMD will continue to develop the Ryzen AI line. The company is expanding its AI PC portfolio, with the new Ryzen AI Max and Ryzen AI Max PRO processors, as well as the expanded Ryzen AI 300 and Ryzen AI 300 PRO line.
The Ryzen 9000 Series launched as part of the launch of the new Zen5 architecture, the most powerful consumer processors, and the Ryzen AI 300 Series, the third generation for AI PCs, with performance up to 50 TOPS.
Revenues directly from GPU Instinct in 2024 amounted to more than $5 billion, the company predicts their increase to tens of billions in the coming years.
The company focuses on expanding the AI ecosystem (AMD's initially weak spot compared to Intel and Nvidia), including ROCm software and integration with major customers such as Microsoft, Google, Amazon and Meta.
The company plans to expand cooperation with leading cloud service providers and software developers to optimize AI solutions based on its processors.
Q3 revenue growth from data center processors. AMD top contender to move from Nvidia pedestal
AMD's revenue in the third quarter of 2024 reached a record $6.82 billion, increasing by 17.6% for the year and + 22.5% for two years, interrupting more than two years of stagnation. Compared to 3q19, an increase of 278.6%.
Since the beginning of the year, the indicators are slightly less pronounced, but still strong: $18.1 billion in revenue for 9m24 vs $16.5 billion for 9m23 (+ 9.8% YoY), $18 billion for 9m22 (+ 0.7% over two years) and only $4.6 billion for 9m19 (+ 293% over 5 years).
Operating profit amounted to $0.72 billion (+ 223% for the year, a volatile indicator). For 9m24, operating profit amounted to $1.03 billion vs $0.1 billion for 9m23, $1.44 billion for 9m22 and $0.28 billion for 9m19.
Net profit increased to 0.77 billion (+ 158% YoY), for 9m24 - 1.16 billion, for 9m23 - 0.19 billion, for 9m22 - 1.3 billion, for 9m19 - 0.17 billion.
How does AMD generate revenue? The four divisions are:
- Data Center - generates $3.55 billion for 3Q24, which is 122% higher than last year and accounts for a record 52% in the structure of all revenue vs a share of 27% in 3Q23, 29% in 3Q22 and 26% in 3Q21. Accordingly, it was from 2024 that the acceleration of the date of the centers and AI segment in AMD began.
This is the fastest growing and margin segment of the business. Three years ago, for 9m21, the total revenue was only $2.5 billion, for 9m22 - $4.4 billion, for 9m23 - $4.2 billion, and for 9m24 - $8.7 billion.
This is mainly due to a significant increase in the supply of AMD Instinct GPUs and an increase in sales of AMD EPYC processors.
AMD managed to rock AMD Instinct MI300X due to hardware modifications, drivers and infrastructure development ON to NVIDIA H100, and AMD is also deploying integration Llama from 3.2 to. Meta
AMD is expanding strategic partnerships with leading players including Dell, Google Cloud, HPE, Lenovo, Meta, Microsoft, Oracle Cloud Infrastructure, Supermicro and AI leaders Databricks, Essential AI, Fireworks AI, Luma AI and Reka AI, have introduced a wide range of solutions providing scalable enterprise AI based on AMD's latest solutions.
AMD is also expanding and improving its server and AI segment: the new AMD EPYC 9005 series processors with record performance and energy efficiency and the new generation of AMD Instinct MI325X that can compete with the latest developments. Nvidia
- The second division of Client Segment, which includes desktop, laptop processors and chipsets, has revenue of $1.89 billion, an increase of 29.5% YoY, for 9m24 - 4.7 billion vs 3.2 billion for 9m23 and 5.3 billion for 9m22.
Nothing outstanding here, there is a creeping bite of Intel's market share, but this segment itself stagnates after active expansion in 2020-2021 amid the updating of remote work.
- The gaming segment is very bad - $0.92 billion in 3q24, a decrease of 25.4% y/y, for 9m24- 2.6 billion, for 9m23 - 4.3 billion, and for 9m22 - 3.2 billion, that is, since the beginning of the year, revenue has collapsed by 40%, which is due to the crisis in PC gaming due to the lack of high-profile projects and a change in leisure format towards mobile games.
- The fourth segment is embedded and everything is terrible here. Revenue amounted to $0.46 billion, having collapsed more than three times or by 69% YoY, for 9m24 - 2 billion, for 9m23 - 4.8 billion, for 9m22 - 5.2 billion.
Embedded solutions are products designed for specific tasks and systems that are integrated into specialized equipment used in medical equipment, cars, processors for kiosks, ATMs, automation systems, etc.
AMD is bad everywhere except the server side, and specifically the AI segment. If we highlight the date of the centers, all other revenues for 9m24 amounted to 9.4 billion vs 12.3 billion for 9m23 and 13.6 billion for 9m22, i.e. a downward trend.
AI saves, it is AMD that is the main contender for removal from the Nvidia pedestal.
For 34 years of its history, AMD was able to earn only $1 billion in profit
Until 2018, AMD was unprofitable, from 1990 to 2018 the accumulated net loss amounted to $7.6 billion, and from 2018 to the 2nd quarter of 2024, the accumulated profit was only $8.8 billion, i.e. in the entire history of AMD was able to earn a little more than $1 billion!
2022
Share of business revenues in China - 22%
Revenue growth year-on-year in the first quarter - 71% (up to $5.9 billion)
2020: Revenue growth by 45%, to $9.76 billion
At the end of 2020, AMD raised $9.76 billion, which is 45% more than a year earlier. Moreover, both main divisions of the company demonstrated significant growth: AMD Computing and Graphics Business Group (processors for computers) and AMD Enterprise, Embedded and Semi-Custom (solutions for game consoles, servers and embedded systems).
The first of these divisions in 2020 registered sales at $6.43 billion against $4.71 billion a year earlier. In AMD Enterprise, Embedded and Semi-Custom, revenue during this time increased from $2.02 billion to $3.33 billion.
AMD ended 2020 with a net profit of $2.49 billion, while a year earlier profit was measured at $341 million. Profit at AMD Computing and Graphics Business Group more than doubled to $1.27 billion, while profit at AMD Enterprise, Embedded and Semi-Custom rose from $263 million to $391 million.
According to AMD, shipments of the company's desktop and laptop processors increased at a double-digit pace in 2020. Ryzen mobile solutions have been installed in more than 100 new laptop models.
As noted by AMD CEO Lisa Su, the volume of the global PC market in 2020 grew by 13%, exceeding 300 million units for the first time since 2014. This allowed AMD to increase revenue from the sale of processors in the client segment by one and a half times, this figure in absolute terms reached a record value for the year.
The average cost of AMD processors has decreased due to an increase in the share of cheaper Ryzen mobile solutions. In the graphics market, the average price tag, on the contrary, has grown.
AMD capital expenditures in 2020 amounted to $294 million against $217 million a year earlier. The company's total debts decreased from $486 million to $330 million.[1]
Notes
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