What drove AMD's operating profit rebound in Q3 2024?

AMD's operating profit rebounded in Q3 2024 due to several key factors:

1. Strong Data Center Segment Performance: The data center segment contributed significantly to the revenue growth, with record revenues driven by the demand for Instinct GPUs and EPYC CPUs. This segment's operating income was $743 million, up 405% from the prior year.
2. AI Chip Sales Growth: The sales of AI chips, particularly the Instinct MI300 GPUs, played a crucial role in the revenue surge. These chips generated over $1 billion in quarterly revenue for the first time, showcasing strong demand in the AI market.
3. Strategic Investments and Partnerships: AMD's strategic investments in AI and data center technologies, along with strategic partnerships, have positioned it well to capitalize on the growing AI demand. The company's AI business is accelerating, creating significant growth opportunities.
4. Client Segment Growth: The client segment also performed well, with a 49% year-over-year increase in revenue, driven by the success of Ryzen processors.

In summary, AMD's operating profit rebound in Q3 2024 was driven by the strong performance of its data center segment, particularly in AI chip sales, strategic investments, and growth in the client segment.