AMD Q3'2024 Financials
AMD's Q3 2024 revenue hit $6.819 billion, an 18% YoY increase, with AI and data center sales exceeding 50%. However, gaming revenue fell 69%, and stock dropped over 7%.
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AMD reported its Q3 2024 financial results, marking its highest revenue to date at $6.819 billion, an 18% increase year-over-year. The data center and AI segments now account for over 50% of total revenue, driven by strong demand for the MI300X series AI accelerators and the new Zen 5 CPU architecture. AMD has raised its revenue forecast for the MI300 series to over $5 billion for the year. The company also reported a gross margin of 50% and operating income of $724 million, significantly up from the previous year. However, the gaming segment saw a substantial decline, with revenue dropping 69% year-over-year to $462 million, attributed to inventory drawdowns and a lack of new product launches. The embedded segment also faced challenges, with revenue down 25% year-over-year but showing signs of recovery. Looking ahead, AMD expects Q4 revenue to reach approximately $7.5 billion, bolstered by continued sales of AI accelerators and new processor launches. Despite the strong performance, AMD's stock fell over 7% in after-hours trading, reflecting high investor expectations.
- AMD's Q3 2024 revenue reached $6.819 billion, an 18% increase YoY.
- Data center and AI revenue now exceeds 50% of total revenue.
- Gaming revenue declined 69% YoY to $462 million.
- Q4 revenue is projected at $7.5 billion, driven by AI and new processor sales.
- AMD's stock dropped over 7% post-announcement, indicating high investor expectations.
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5 commentsNvidia P/E ratio is ~65
Yet I constantly hear how Nvidia is overvalued.
They are seriously hurting Intel in the datacenter space, but Intel is not dead yet and their accelerator have so far seen very small adoption. They are fabless meaning that their margins are capped, x86 mobile CPUs are under attack from ARM and all hyperscalers are working on their own accelerator with some degree of success. They won't move to AMD GPUs.
They are a good company putting out great hardware, but at the current price I just don't get it.
We are in a very bad situation due to global wars, excess COVID money (a lot of which went to rich people who pumped up the stock market) and an energy crisis induced by sanctions and the Nordstream terrorism act. No company in Germany will buy expensive CPUs, they barely survive. Global revenue matters ...
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