How did AMD's Data Center revenue surge in Q4 2024?

AMD's Data Center revenue surged in Q4 2024 due to several key factors:

1. Strong Product Performance: AMD's EPYC processors and Instinct series of AI accelerators have been driving significant growth in the data center segment. These products have found strong demand in the market, particularly for AI computing needs.
2. Strategic Acquisitions: AMD's acquisition of ZT Systems, a key supplier to AWS, is expected to have a positive impact on its data center revenue. Although AWS is reducing its spending on ZT Systems, the transition to in-house hardware design will likely increase demand for AMD's data center components.
3. Market Share Gains: AMD has been gaining market share in the AI GPU market, with a notable increase in its global GPU market share from 10% to 17% in Q4 2024. This growth in market share is a result of AMD's competitive pricing and total-cost-of-ownership advantages over rival NVIDIA.
4. Innovative Roadmap: AMD's roadmap for the next-generation MI350 series GPUs, which are set to launch in mid-2025, has been well-received by customers. This product innovation is expected to further bolster AMD's competitive edge in the data center market.

The combination of strong product performance, strategic acquisitions, market share gains, and innovative roadmap has contributed to AMD's data center revenue surge in Q4 2024.