AMD Revenues Up Just 2 Percent, But PC Business Surged

Microprocessor maker AMD reported a net income of $123 million on revenues of $5.5 billion for the quarter ending March 30. Revenue was up just 2 percent, but the results were slightly better than expected.

“We delivered strong first quarter results with our Data Center and Client segments each growing more than 80 percent year-over-year,” AMD chair and CEO Dr. Lisa Su said. “This is an incredibly exciting time for the industry as widespread deployment of AI is driving demand for significantly more compute across a broad range of markets. We are executing very well as we ramp our data center business and enable AI capabilities across our product portfolio.”

AMD’s Data Center business carried the day with $2.3 billion in revenues, a gain of 180 percent YOY. The company reported record data center GPU sales, with its MI300 surpassing $1 billion in cumulative revenues since its launch in late 2023. The MI300X model is used by Microsoft, Meta, and Oracle in their datacenters.

The Client group delivered another $1.4 billion in revenues, up 185 percent YOY, driven primarily by AMD’s AI-accelerated Ryzen 8000 series processors. AMD says that over 150 partners will deliver AI PCs based on its processors by the end of 2024, and it’s on track to launch its next-generation “Strix Point” processors in the second half of the year.

Gaming provided another $922 million in revenues, down 54 percent YOY, while Embedded ($846 million, down 54 percent) and All Other (an operating loss of $1 billion) brought up the rear.

Looking ahead, AMD said that it would likely experience 6 percent YOY growth in the next quarter. Oddly, this didn’t impress investors, with AMD’s stock price taking a hit in after-hours trading.