AMD to Report Fiscal Fourth Quarter and Full Year 2024 Financial Results

Alright, AMD enthusiasts, mark your calendars! On Tuesday, February 4, 2025, AMD (NASDAQ: AMD) will be reporting its fiscal fourth quarter and full year 2024 financial results after market close. The company's management will also be hosting a conference call at 5:00 p.m. EST / 2:00 p.m. PST to discuss these results. So, what can we expect from AMD's latest financial performance?

First off, let's take a look at AMD's recent financial highlights. In the third quarter of 2024, AMD reported revenue of $6.8 billion, up 18% year-over-year and 17% sequentially. The company's gross margin was 50%, up 3 ppts YoY and 1 ppt sequentially, while operating margin was 11%, up 7 ppts YoY and 6 ppts sequentially. AMD's net income was $771 million, up 158% YoY and 191% sequentially, with EPS of $0.47, up 161% YoY and 194% sequentially.

Now, let's dive into the key segments that drove AMD's growth in 2024:

1. Data Center Segment: AMD's data center segment revenue grew by 18% year-over-year and 17% sequentially, driven by strong sales of EPYC and Instinct data center products. The segment's revenue for the full year 2024 was $6.5 billion, an increase of 7% compared to the prior year. This growth was primarily due to the increasing demand for high-performance computing and AI workloads in data centers.
2. Client Segment: AMD's client segment revenue increased by 29% year-over-year and 26% sequentially, primarily driven by strong demand for "Zen 5" AMD Ryzen processors. The segment's revenue for the full year 2024 was $4.7 billion, down 25% compared to the prior year. This decline can be attributed to a decrease in the PC market.
3. Gaming Segment: AMD's gaming segment revenue was $1.4 billion, down 17% year-over-year and 9% sequentially, primarily due to a decrease in semi-custom revenue, partially offset by an increase in AMD Radeon GPU sales. The segment's revenue for the full year 2024 was $6.2 billion, down 9% compared to the prior year primarily due to lower semi-custom sales.
4. Embedded Segment: AMD's embedded segment revenue was $1.1 billion, down 24% year-over-year and 15% sequentially primarily due to customers reducing their inventory levels. The segment's revenue for the full year 2024 was $5.3 billion, up 17% compared to the prior year, primarily due to the inclusion of a full year of revenue related to the acquisition of Xilinx completed in February 2022.

As we look ahead to AMD's fiscal fourth quarter and full year 2024 results, there are a few key trends to keep in mind:

1. AI and Data Center Growth: AMD's data center segment is expected to continue growing, driven by the increasing demand for AI and high-performance computing. The company's recent announcements, such as the general availability of AMD Instinct MI300X accelerators and the AMD Instinct MI300A APU, demonstrate AMD's commitment to driving innovation in these areas.
2. Expansion into New Markets: AMD's acquisition of Xilinx has opened up new opportunities in the embedded market, and the company is expected to continue exploring growth opportunities in this segment. Additionally, AMD's expansion into high-performance networking with the AMD Pensando portfolio could drive further growth in the coming years.
3. Technological Advancements: AMD's ongoing investment in research and development is expected to lead to the launch of new products and technologies that can drive growth in the coming years. For example, AMD has announced plans to launch next-gen AMD Instinct accelerators in 2025 and 2026, which could further boost the company's growth in the AI and data center markets.

In conclusion, AMD's fiscal fourth quarter and full year 2024 results are expected to be driven by the company's strong performance in the data center and embedded segments, as well as its continued investment in AI and high-performance computing. As AMD continues to innovate and expand into new markets, investors can expect the company to deliver strong financial performance in the coming years. So, mark your calendars, AMD enthusiasts, and get ready for an exciting earnings call on February 4, 2025!