News AMD 3Q24 Earnings Results

[Hitman928]

Results should be coming out soon.

As a refresher, this was AMD's 3Q forecast from their 2Q report:

For the third quarter of 2024, AMD expects revenue to be approximately $6.7 billion vs. $6.61B consensus, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 16% and sequential growth of approximately 15%. Non-GAAP gross margin is expected to be approximately 53.5%.

Analysts' expectations are that AMD will come in on the high end of their estimate, if not beat it as they believe AMD has continued to take share from Intel in DC as well as consumer. They also expect AMD's AI sales forecast to be positive.

 

[Hitman928]

Earnings came in right about as expected. Will update this post as more info comes in.



Forecast for 4Q24:

For the fourth quarter of 2024, AMD expects revenue to be approximately $7.5 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 22% and sequential growth of approximately 10%. Non-GAAP gross margin is expected to be approximately 54%.

Strong report overall and looks like AMD is back to strong growth.

 

[Hitman928]

Summary of each segment:

• Record Data Center segment revenue of $3.5 billion was up 122% year-over-year and 25% sequentially primarily driven by the strong ramp of AMD Instinct™ GPU shipments and growth in AMD EPYC™ CPU sales.
• Client segment revenue was $1.9 billion, up 29% year-over-year and 26% sequentially primarily driven by strong demand for “Zen 5” AMD Ryzen™ processors.
• Gaming segment revenue was $462 million, down 69% year-over-year and 29% sequentially primarily due to a decrease in semi-custom revenue.
• Embedded segment revenue was $927 million, down 25% year-over-year as customers normalized their inventory levels. On a sequential basis, revenue increased 8% as demand improved in several end markets.

Looks like AMD is continuing to take share from Intel in DC and consumer. Zen 5 sales look strong (mostly mobile offerings I'm sure). Gaming continues to plummet on soft console sales, maybe some lower GPU sales this Q as well. Embedded segment looks like it is starting to recover.

 

[gdansk]

driven by strong demand for “Zen 5” AMD Ryzen™ processors

well that's a surprise

 

[gdansk]

It's not surprising but every time AMD has an earnings report, even if it was at the expectation, their stock drops after hours.

 

[Hitman928]

This quarter marked AMD's highest quarterly revenue ever. Obviously next quarter will mark a new record again.

 

[Hitman928]

It's not surprising but every time AMD has an earnings report, even if it was at the expectation, their stock drops after hours.

After hours numbers don't mean much typically, it's people trading on the headline. Unless AMD completely blew out expectations, it's going to be down. The price tomorrow and through the end of the week will be the true say on what the market thinks of the results.

 

[cebri1]

After hours numbers don't mean much typically, it's people trading on the headline. Unless AMD completely blew out expectations, it's going to be down. The price tomorrow and through the end of the week will be the true say on what the market thinks of the results.

It's about a dissapointing growth outlook (compared to market estimates).

 

[Hitman928]

It's about a dissapointing growth outlook (compared to market estimates).

$7.5B forecast vs. $7.55B analysts expectations, not very far off and AMD is typically conservative in their forecasts, I'd be a little surprised if they don't hit the higher expectation.

 

[controlflow]

It's not surprising but every time AMD has an earnings report, even if it was at the expectation, their stock drops after hours.

The results this quarter are quite solid and guidance looks healthy as well but the market had priced in even higher expectations.

 

[adroc_thurston]

well that's a surprise

No amount of zen5% poasting stops the MSS creep. Will be even nastier in 2025.

 

[Mopetar]

This quarter marked AMD's highest quarterly revenue ever. Obviously next quarter will mark a new record again.

Even more impressive when you consider that it wasn't all that long ago when they didn't even bring in this much revenue in an entire year, let alone actually make a profit.

Lisa Su is probably one of the best CEOs in modern times. What AMD has been able to accomplish under her leadership is nothing short of amazing and calls to mind Apple under Jobs when he returned to the company.

 

[desrever]

Very good numbers out of AMD. Can't wait to compare to Intel's in 2 days. 🙃

 

[Joe NYC]

well that's a surprise

That would include Strix Point.

But I have a feeling that AMD is finally gaining some traction in corporate desktops. Desktop was mentioned more than once during the call, and AMD also mentioned some large enterprises adopting AMD - presumably for corporate desktops.

 

[Joe NYC]

No amount of zen5% poasting stops the MSS creep. Will be even nastier in 2025.

It looks like AMD made a sizeable market share gain on Intel in both server and client this quarter. We will get the confirmation in 2 days.

Intel and AMD swapping the order of who report first will make it impossible for Intel to say it is gaining market share when both numbers are in and say otherwise.

 

[Hitman928]

It looks like AMD made a sizeable market share gain on Intel in both server and client this quarter. We will get the confirmation in 2 days.

Intel and AMD swapping the order of who report first will make it impossible for Intel to say it is gaining market share when both numbers are in and say otherwise.

The cynic in me thinks that Intel decided to start releasing earnings after AMD to know how far they can spin their narrative after looking silly a few times calling out market softness as AMD continued to grow.

 

[desrever]

The cynic in me thinks that Intel decided to start releasing earnings after AMD to know how far they can spin their narrative after looking silly a few times calling out market softness as AMD continued to grow.

I think Intel has very good internal numbers on how they expect AMD is doing. They just making excuses of market softness cause they don't want to publicly say they are falling behind their competitors in the own ER.

They consistently reported ahead of AMD with bad numbers so maybe this quarter will be less bad than expected.

 

[Joe NYC]

I think Intel has very good internal numbers on how they expect AMD is doing. They just making excuses of market softness cause they don't want to publicly say they are falling behind their competitors in the own ER.

They consistently reported ahead of AMD with bad numbers so maybe this quarter will be less bad than expected.

This Reuters story predicts otherwise:

https://www.reuters.com/technology/intel-set-big-drop-quarterly-revenue-chipmaker-struggles-bounce-back-2024-10-29/

 

[Hitman928]

Lisa Su again updated the Data Center GPU sales. AMD is now expecting $5B in total DC GPU sales for the year, up from the $4.5B estimated last quarter and the original $3.5B estimate.

 

[Hitman928]

Lisa Su expects to be supply side limited for DC GPU for at least the next few quarters despite planning for significant growth.

Clearly, it's a tight supply environment, but we've done a great job getting -- ensuring that we have capacity across the entire supply chain. Again, that was part of the reason for the higher revenue in the third quarter around our Instinct business, just both customer demand as well supply chain improvement.

And going into the next few quarters going into 2025, I think we expect that the environment will continue to be tight, but we've also planned for significant growth going into 2025. And so, we feel good about our overall supply chain capability.

 

[jpiniero]

The gaming numbers are brutal. Especially being that this would have been the quarter they would have started to ramp the PS5 Pro supply too.

I'm not sure there's much AMD can do about the console sales either.

That would include Strix Point.

Yeah, it's almost certainly Phoenix being the driver. At least when I looked, Strix is pretty much MIA. It would be pretty funny if AI hype is what gets OEMs to push AMD to Corpos since Raptor Lake doesn't have it.

 

[adroc_thurston]

Especially being that this would have been the quarter they would have started to ramp the PS5 Pro supply too.

Neither console vendor has any games this year and AMD has no interesting dGFX offerings until N48 launch.

 

[DavidC1]

$7 billion quarterly revenue. Without paying attention you would think you were looking at Intel revenue graphs of not too long ago.

 

[Tigerick]

AMD's DC revenue has more than double compared to last year.

Unless Intel's DC revenue increases a lot, AMD will for the first time surpass Intel's DC revenue, another blow for Intel

 

[DrMrLordX]

well that's a surprise

See below.

But I have a feeling that AMD is finally gaining some traction in corporate desktops. Desktop was mentioned more than once during the call, and AMD also mentioned some large enterprises adopting AMD - presumably for corporate desktops.

Zen5 is pretty impressive as a corpo laptop/desktop core. However . . .

Yeah, it's almost certainly Phoenix being the driver. At least when I looked, Strix is pretty much MIA. It would be pretty funny if AI hype is what gets OEMs to push AMD to Corpos since Raptor Lake doesn't have it.

Sure it isn't Hawk Point rather than Phoenix?