- AMD’s revenue surged by 49% in 2024, driven by strong data centre demand.
- Next-gen MI350 GPUs will launch earlier than planned to capitalise on market demand.
What happened: AMD sees record revenue growth as data centre demand surges
Advanced Micro Devices (AMD) reported a substantial increase in revenue for both Q4 and full-year 2024, largely driven by soaring demand in its data centre segment. The company’s Q4 revenue climbed by 51% year-over-year to $7.7 billion, while annual revenue rose by 49% to $25.8 billion, setting a new record. Net income also saw a significant rise of 26%, with free cash flow more than doubling from 2023 levels.
A major contributor to this growth was AMD’s data centre business, which accounted for roughly 50% of its total revenue. This segment generated $3.9 billion in Q4 alone, marking a 69% year-over-year increase. Key growth drivers included AMD’s Instinct GPUs and EPYC CPUs, which are being adopted for various high-performance computing applications, including supercomputers like El Capitan.
AMD’s CEO Lisa Su announced that the company will accelerate the release of its MI350 GPU series, initially planned for the second half of 2025, now set for mid-year. The decision comes as customer demand intensifies and competitor Nvidia faces delays with its Blackwell GPU lineup. Su emphasised that this move will enhance AMD’s competitive standing in the market, with strong double-digit growth expected for its data centre segment in 2025.
AMD’s chief financial officer Jean Hu reinforced this optimism, stating that the performance of the data centre business has been in line with expectations. The company projects a robust first half of 2025, mirroring the strength seen in the latter half of 2024.
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Why it’s important
The record-breaking financial results reflect AMD’s growing influence in the data centre sector, where its chips are increasingly being adopted for AI workloads and cloud computing. With data centres playing a crucial role in modern computing infrastructure, AMD’s expansion in this market signals its ability to challenge dominant players like Nvidia and Intel.
The decision to bring forward the release of the MI350 GPU series highlights the intensity of competition in the high-performance computing market. Nvidia’s delays in launching its Blackwell GPUs provide AMD with a strategic opportunity to gain market share, particularly as AI-driven demand for powerful GPUs continues to escalate.
Additionally, the substantial revenue contribution from AMD’s EPYC server processors underscores the broader shift towards efficient, high-performance computing solutions. The ongoing evolution of AI, machine learning, and cloud-based services ensures that demand for data centre hardware will continue to grow, positioning AMD as a key player in the industry.
