Semiconductor company AMD reported $7.7 billion in revenue for the fourth quarter of 2024, driven by strong demand for its data center products. The company recorded a gross margin of 51%, an operating income of $871 million, and a net income of $482 million.
On a non-GAAP basis, AMD’s revenue reached $7.7 billion, with a 54% gross margin and a $1.8 billion net income.
“2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” said Lisa Su, chair and CEO of AMD. “Data Center segment annual revenue nearly doubled as EPYC processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue.”
For the full year, AMD’s revenue reached $25.8 billion, with a 49% gross margin and a net income of $1.6 billion. On a non-GAAP basis, the company posted $5.4 billion in net income and a 53% gross margin.
“We closed 2024 with a strong fourth quarter, delivering record revenue up 24% year-over-year, and accelerated earnings expansion while investing aggressively in AI and innovation to position us for long-term growth and value creation,” said Jean Hu, EVP, CFO, and treasurer at AMD.
Data center
AMD’s Data Center segment posted $3.9 billion in revenue for the quarter, up 69% year-over-year, as demand for AMD Instinct GPUs and EPYC CPUs grew. The segment generated $12.6 billion for the full year, a 94% increase from 2023.
The Client segment, which includes Ryzen processors, recorded $2.3 billion in revenue for the quarter, a 58% increase year-over-year. Full-year revenue rose to $7.1 billion, up 52% from 2023.
In contrast, the Gaming segment saw a decline, with quarterly revenue at $563 million, down 59% year-over-year. Full-year gaming revenue dropped to $2.6 billion, a 58% decrease, mainly due to lower semi-custom chip sales.
The Embedded segment posted $923 million in quarterly revenue, down 13% from the previous year. For 2024, the segment recorded $3.6 billion in revenue, a 33% decline as customers adjusted their inventory levels.
For the first quarter of 2025, AMD expects revenue of approximately $7.1 billion, plus or minus $300 million, and a non-GAAP gross margin of 54%.