AMD sold $1B of Instinct GPUs in 2Q, driving 3-digit datacenter growth

AMD reported over $1 billion in revenues from its Instinct MI300X GPUs in the second quarter of 2024, contributing significantly to a 115% year-over-year increase in datacenter revenues. CEO Lisa Su projected that these accelerators could generate over $4.5 billion in the fiscal year, surpassing earlier estimates. The MI300 series, launched in December, is designed for AI applications and has been adopted by Microsoft for services like GPT-4 Turbo. Overall, AMD's datacenter revenues accounted for nearly half of its total Q2 revenues of $5.8 billion, which also included a 49% growth in its client group driven by Ryzen processor sales. However, the company faced challenges in its gaming segment, with revenues dropping 59% year-over-year due to decreased demand for game consoles. Sales of embedded processors also fell 41%, although there are signs of recovery. Looking ahead, AMD anticipates continued growth in datacenter and client products, despite expected declines in gaming revenue. The company is also facing supply chain constraints that may persist through 2025. AMD's stock rose over 7% following the earnings report, although it remains significantly behind Nvidia, which reported $26 billion in revenue, primarily from datacenter products. AMD expects Q3 revenues to grow by 15% quarter-over-quarter, projecting around $6.7 billion.