Q4 2024 Advanced Micro Devices Inc Earnings Call Transcript
Key Points
- Advanced Micro Devices Inc (AMD) achieved record annual revenue of $25.8 billion in 2024, marking a 14% increase year over year.
- The Data Center segment contributed roughly 50% of annual revenue, with a 69% year-over-year increase to a record $3.9 billion.
- AMD's Client segment revenue increased 58% year over year to a record $2.3 billion, driven by strong demand for Ryzen processors.
- The company successfully established a multi-billion-dollar Data Center AI franchise, delivering over $5 billion in revenue for 2024.
- AMD expanded its ROCm software suite, enhancing inferencing and training performance, and achieved significant customer adoption.
- Gaming segment revenue declined 59% year over year to $563 million, primarily due to a decrease in semi-custom sales.
- Embedded segment revenue decreased 13% year over year to $923 million, with mixed demand across markets.
- The company anticipates a significant decline in its Gaming business and a modest decline in its Embedded business for the first quarter of 2025.
- AMD's gross margin guidance for the first quarter of 2025 remains flat at 54%, indicating potential pressure on profitability.
- The company faces competitive pressures in the server CPU market, with concerns about aggressive pricing from competitors.
Greetings, and welcome to the AMD fourth-quarter and full year 2024 conference call. (Operator Instructions) . And as a reminder, this conference is being recorded. It is now my pleasure to introduce to you [Matt Ramsey], Vice President of Investor Relations. Thank you, Matt. You may begin.
Thank you, and welcome to AMD's Fourth Quarter and Full Year 2024 Financial Results Conference Call. By now, you should have had the opportunity to review a copy of our earnings press release and accompanying slides. If you have not had the chance to review these materials, they can be found on the Investor Relations page of amd.com.
We will refer primarily to non-GAAP financial measures during today's call. The full non-GAAP to GAAP reconciliations are available in today's press release and slides posted on our website.
Participants in today's conference call are Dr. Lisa Su, our Chair and Chief Executive Officer; and Jean Hu, our Executive Vice President and Chief Financial
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