AMD today announced blowout earnings for its most recent fiscal quarter. They announced a consolidated net income of $709 million, or 44 cents per diluted share. That’s a major jump from the previous year’s net income of $123 million, or 7 cents per share. The company’s total revenue increased a remarkable 36% YoY. This boom is a result of high demand from various industries, most notably from the development of artificial intelligence.
AMD’s earnings have exploded by over 1000%. This increase is largely attributed to about $5 billion worth of AI GPU sales fiscal 2024. The company’s data center segment continued to achieve blockbuster growth. Related to the strong sales of Epic processors and Instinct GPUs, AMD reported total datacenter revenues of $3.7 billion, up 57% year-over-year. Analysts noted that the jump was due to a spike in consumer demand. This specific demand addresses the technologies that enable creation and deployment of generative AI applications.
While the news was overall positive for AMD, one segment proved to be a thorn in its gaming side. Sales in this key segment dropped 30% from year ago levels. This decline was mostly due to a collapse in console chip sales. This drop illustrates the volatile and dynamic shifts in consumer preferences within the gaming industry. By complete contrast, the data center and AI sectors are booming.
AMD’s overall segment revenue rose 28% year-on-year to $2.9 billion, showcasing the company’s ability to adapt and grow despite challenges in specific markets. Data center sales blew away StreetAccount estimates by a large margin. This horn-tooting about success underscores AMD’s continuing competitive advantages in an evolving technology landscape.