AMD has delivered a strong performance in its Q2 2024 earnings report, surpassing analyst revenue and EPS estimates. The company reported $5.8 billion in revenue, exceeding the expected $5.72 billion. A key driver of this success was the remarkable growth of AMD’s AI division within the Data Center segment. Data Center revenue soared by 115% year-over-year, with operating income experiencing an even more impressive 405% annual increase. This robust performance in the Data Center segment helped offset the significant slump experienced by the gaming and embedded businesses divisions. Gaming revenue saw a sharp decline of 59% year-over-year, reaching just $648 million in Q2 2024.
Despite this downturn, AMD remains optimistic about its future prospects. Dr. Lisa Su, AMD’s Chair and CEO, highlighted the company’s strong revenue and earnings growth, attributing it to record-breaking Data Center segment revenue. She emphasized the continued acceleration of the AI business and the company’s well-positioned stance to deliver substantial revenue growth in the second half of the year. This growth is expected to be driven by demand for AMD’s Instinct, EPYC, and Ryzen processors. The rapid advancements in generative AI are creating a surge in demand for compute power across all markets, presenting significant growth opportunities for AMD as it delivers leading AI solutions across its business.
