Q3'24 Earnings Highlights:
- Revenue: $6.82B (Est. $6.71B); UP +18% YoY
- Adj. EPS: $0.92 (Est. $0.92)
- Adj. Gross Margin: 54% (Est. 53.4%); UP from 51% YoY
- Adj. Operating Income: $1.72B; UP +34% YoY
- Free Cash Flow: $496M; UP +67% YoY
Q4'24 Guidance:
- Revenue Target: $7.5B ± $300M (Est. $7.55B); Represents +22% YoY growth at midpoint
- Non-GAAP Gross Margin: ~54%
Segment Performance:
- Data Center: $3.55B (Est. $3.48B); UP +122% YoY
- Strong ramp-up in AMD Instinct GPU shipments and EPYC CPU sales...Segment continues leading AMD's growth trajectory
- Client: $1.88B (Est. $1.74B); UP +29% YoY
- Recovery in PC market with demand for “Zen 5” Ryzen processors
- Embedded: $927M (Est. $917.1M); DOWN -25% YoY
- Impact from inventory normalization; slight sequential improvement
- Gaming: $462M (Est. $577.4M); DOWN -69% YoY
-Decline driven by reduced semi-custom revenue
Operational Metrics:
- R&D Investment: $1.64B; UP +8.6% YoY
- Capital Expenditure: $132M; UP +6.5% YoY
- Operating Margin: 25% (Est. 25.6%); UP from 22% YoY
Recent Developments:
- AMD announced new EPYC 9005 Series processors with industry-leading performance and energy efficiency for data centers.
- Expanded AI partnerships with leading cloud providers, including Google Cloud, Meta, Microsoft, and Oracle.
- Unveiled Ryzen AI PRO 300 Series mobile processors, delivering 50+ AI TOPS and leadership in battery life and security for enterprise laptops.
- AMD's Instinct MI300X accelerators powered Oracle Cloud's Compute Supercluster, designed for high-demand AI workloads.
- Completed the acquisition of Silo AI to enhance AMD's AI model development capabilities.
- Announced plans to acquire ZT Systems to expand AMD’s data center AI systems capacity.
CEO Dr. Lisa Su's Commentary:
"We delivered strong third-quarter financial results, led by record sales of EPYC and Instinct data center products and robust demand for Ryzen processors. We see significant growth opportunities across all our segments driven by the insatiable demand for more compute."
CFO Jean Hu's Commentary:
"We executed well in Q3, with revenue above expectations and strong expansion in gross margin. We remain on track to deliver record revenue for 2024, driven by the growth in Data Center and Client segments."