AMD's Q4 2024 Earnings Call: Contradictions in Data Center Growth, AI Strategy, and MI300 Supply

These are the key contradictions discussed in AMD's latest 2024Q4 earnings call, specifically including: Data Center GPU business growth expectations, AI market opportunity and strategy, MI300 supply constraints, and MI300 revenue expectations:



Record Revenue and Financial Performance:
- AMD reported record revenue of $7.7 billion for the fourth quarter of 2024, an increase of 24% year-over-year.
- This growth was driven by strong performance in both the Data Center and Client segments, with the Data Center segment revenue increasing by 69% year-over-year.

Data Center AI and GPU Opportunity:
- Data Center AI revenue exceeded $5 billion in 2024, marking the first year of the Data Center GPU business.
- Growth was supported by increased adoption of AMD's Instinct accelerators, strong design win momentum, and advancements in ROCm software and AI workloads.

Client Segment Expansion:
- Client segment revenue grew by 58% year-over-year, reaching $2.3 billion in the fourth quarter, driven by strong demand for AMD Ryzen processors.
- This expansion was attributed to Ryzen's market leadership in both desktop and mobile segments, and new strategic collaborations like the one with Dell.

Server and Data Center CPU Market Share:
- The Data Center segment revenue increased by 69% year-over-year, propelled by the ramp of fifth-gen EPYC Turin processors and strong growth in fourth-gen EPYC sales.
- This was supported by significant cloud and enterprise share gains, particularly with key hyperscale customers.