AMD has reported impressive results for the third quarter of 2024, announcing $6.8 billion in revenue, a 50% gross margin, operating income of $724 million, and net income totaling $771 million. The company attributes its remarkable growth to stellar performance in its data center division, which alone earned $3.5 billion—showing a year-over-year increase of 122% and a 25% rise from the previous quarter—largely driven by the soaring demand for AMD Instinct GPUs and AMD EPYC CPUs.

AMD Chair and CEO Dr. Lisa Su emphasized the strengths of AMD’s data center offerings, noting the robust market presence of both EPYC CPUs and Instinct GPUs. Dr. Su mentioned that the increasing sales of Ryzen PC processors also played a significant role in this upward trend. “The unquenchable demand for more compute is driving significant growth opportunities across our data center, client, and embedded businesses in the future,” she remarked.

Jean Hu, AMD’s CFO, expressed confidence in the company’s financial outlook, highlighting improved gross margins and earnings per share. Given the notable progress in both Data Center and Client segments, Hu indicated that AMD is positioned to reach record revenues by the end of 2024.

Looking forward, AMD anticipates fourth-quarter sales to be around $7.5 billion, with a possible variation of $300 million, marking a sequential increase of 10% and a year-over-year gain of 22% at the midpoint of this forecast. The company also projects a non-GAAP gross margin of approximately 54%.

AMD Instinct MI325X Accelerator

During the Advancing AI 2024 event, AMD highlighted its advancements, reinforcing its position in enterprise AI. Teaming up with major partners like Dell, Google Cloud, HPE, Lenovo, Meta, Microsoft, and Oracle Cloud Infrastructure, AMD introduced solutions tailored to enhance AI applications.

One key highlight was the AMD Instinct MI325X accelerator, engineered for demanding AI tasks, which was unveiled with an emphasis on delivering both high performance and energy efficiency. AMD also provided updates on future Instinct accelerators, expected to launch in 2025 and 2026, that promise to bolster capabilities for sophisticated AI applications.

<pAs a testament to its dedication to AI innovation, AMD’s ROCm open software platform continues to enhance the functionality and optimization of AMD Instinct accelerators. For example, Oracle Cloud Infrastructure’s latest Compute Supercluster integrates AMD’s Instinct MI300X accelerators powered by ROCm software, designed for efficient processing of the most demanding AI workloads.

AMD’s strategic initiatives in AI performance and scalability, along with partnerships with leading AI-focused companies such as Databricks and Fireworks AI, position the firm at the leading edge of the data center and AI infrastructure markets. The enduring demand for AMD’s data center products reflects the wider industry’s pursuit for scalable, high-performance computing solutions.