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• Annual Revenue: $25.8 billion, up 14% year over year.

• Fourth Quarter Revenue: $7.7 billion, up 24% year over year.

• Data Center Segment Revenue: $3.9 billion, up 69% year over year.

• Client Segment Revenue: $2.3 billion, up 58% year over year.

• Gaming Segment Revenue: $563 million, down 59% year over year.

• Embedded Segment Revenue: $923 million, down 13% year over year.

• Gross Margin: 54%, up 330 basis points year over year.

• Operating Income: $2 billion, representing 26% operating margin.

• Diluted Earnings Per Share: $1.09, up 42% year over year.

• Free Cash Flow: $1.1 billion for the fourth quarter.

• Cash and Cash Equivalents: $5.1 billion at the end of the quarter.

• Share Repurchase: 1.8 million shares repurchased in the fourth quarter, totaling $256 million returned to shareholders.

• Warning! GuruFocus has detected 6 Warning Signs with AMD.

Release Date: February 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Advanced Micro Devices Inc (NASDAQ:AMD) achieved record annual revenue of $25.8 billion in 2024, marking a 14% increase year over year.

• The Data Center segment contributed roughly 50% of annual revenue, with a 69% year-over-year increase to a record $3.9 billion.

• AMD's Client segment revenue increased 58% year over year to a record $2.3 billion, driven by strong demand for Ryzen processors.

• The company successfully established a multi-billion-dollar Data Center AI franchise, delivering over $5 billion in revenue for 2024.

• AMD expanded its ROCm software suite, enhancing inferencing and training performance, and achieved significant customer adoption.

Negative Points

• Gaming segment revenue declined 59% year over year to $563 million, primarily due to a decrease in semi-custom sales.

• Embedded segment revenue decreased 13% year over year to $923 million, with mixed demand across markets.

• The company anticipates a significant decline in its Gaming business and a modest decline in its Embedded business for the first quarter of 2025.

• AMD's gross margin guidance for the first quarter of 2025 remains flat at 54%, indicating potential pressure on profitability.

• The company faces competitive pressures in the server CPU market, with concerns about aggressive pricing from competitors.

Q & A Highlights

Q: How should we think about the GPU business and its revenue progression in 2025? A: Lisa Su, CEO, stated that AMD was pleased with the 2024 data center GPU business ramp. For 2025, the MI325 launched at the end of Q4, and MI350 series production is pulled into mid-year due to strong demand. The data center business is expected to grow strong double digits, with a stronger second half due to MI350 as a catalyst.