2 Very Big Numbers AMD Stock Investors Need to Watch on Oct. 29

Advanced Micro Devices (AMD) is set to report its fiscal third quarter 2024 financial results on Oct. 29, 2024, and investors should pay close attention to two key numbers related to the company's data center segment. These numbers will provide valuable insights into AMD's competitive position in the rapidly growing AI market and its potential for future growth.


The first number to watch is AMD's data center revenue. AMD's data center segment has been a significant driver of growth, accounting for nearly half of the company's total revenue. In the first quarter of 2024, AMD generated $2.3 billion in data center revenue, representing an 80% increase from the year-ago period. In the second quarter, the company delivered $2.8 billion in data center sales, a whopping 114% year-over-year jump. Investors should look for this trend to continue in the third quarter, as it would be a strong indication that AMD's MI300X GPU is taking market share from Nvidia.


The second number to watch is AMD's data center GPU sales guidance. AMD's foray into AI data center GPUs began with the MI300X, which has already attracted several of Nvidia's biggest customers, including Microsoft, Oracle, and Meta Platforms. The MI325X and MI350X, AMD's upcoming GPUs, will further strengthen its position in the data center GPU segment. AMD's GPU sales forecast for 2024 has already been revised higher twice, currently standing at $4.5 billion. Another upward revision would suggest that demand for AMD's data center GPUs remains strong and that customers view AMD as a genuine alternative to Nvidia.


In conclusion, AMD investors should closely monitor the company's data center revenue and data center GPU sales guidance during the third-quarter earnings call. These two numbers will provide valuable insights into AMD's competitive position in the AI market and its potential for future growth. As AMD continues to innovate and expand its product portfolio, investors can expect the company to remain a strong contender in the data center GPU segment, driving its long-term success.