AMD says data center sales more than doubled in a year

Advanced Micro Devices (AMD) reported its second-quarter earnings for 2024, surpassing Wall Street expectations with a revenue of $5.83 billion and adjusted earnings per share of 69 cents. This performance reflects a significant year-over-year growth in its Data Center segment, which increased by 115% to $2.8 billion, driven by strong sales of AI chips, particularly the MI300X. Despite this growth, AMD's shares have declined by approximately 6% in 2024, contrasting with Nvidia's stock, which has more than doubled due to its dominance in AI GPU sales.

AMD's net income for the quarter was $265 million, compared to $27 million in the same period last year. The company anticipates sales of about $6.7 billion for the upcoming quarter, with expectations of 93 cents in earnings per share. The Client segment, which includes PC sales, rose 49% year-over-year to $1.5 billion, indicating a recovery in the PC market. However, the gaming segment saw a decline, reporting $648 million in revenue, down 59% from the previous year, while the embedded segment generated $861 million, a 41% decrease but still above expectations.

Overall, AMD's focus on expanding its AI chip market share is crucial as it competes with Nvidia, which remains the leading vendor in the data center GPU market.