AMD Q1’24 Earnings Highlights:
– Earnings Performance: AMD’s Q1’24 earnings showed promising results, with an adjusted EPS of $0.62, slightly surpassing the estimated $0.61. Revenue stood at $5.5 billion, also exceeding expectations of $5.45 billion.
– Guidance for Q2’24: However, Q2’24 guidance was slightly below expectations, with projected revenue ranging from $5.4 billion to $6 billion, falling short of the estimated $5.72 billion. Non-GAAP gross margin is expected to be around 53%.
– Segment Performance: The Data Center segment saw significant growth, with revenue reaching $2.3 billion, up by 80% year-over-year (YoY). Client Segment revenue also soared to $1.4 billion, marking an 85% YoY increase. However, Gaming Segment revenue experienced a decline, dropping by 48% YoY to $922 million. Similarly, the Embedded Segment revenue decreased by 46% YoY to $846 million.
– CEO Commentary: Dr. Lisa Su highlighted the robust performance of the Data Center and Client segments, attributing the growth to the ramp of MI300 AI accelerator shipments and the adoption of Ryzen and EPYC processors. She emphasized the increasing demand for compute across various markets, driven by AI deployment.
– CFO Commentary: CFO Jean Hu expressed optimism about AMD’s strong start in 2024, citing record quarterly revenue in the Data Center segment and gross margin expansion. She reiterated the company’s focus on revenue growth, margin improvement, and investment in AI opportunities.
– Strategic Initiatives: AMD is focused on expanding its AI solutions across cloud, enterprise, embedded, and PC markets. It introduced new Versal Series Gen 2 devices, including AI Edge Series Gen 2 SoCs, and enhanced its software offerings for gamers with AMD FidelityFX Super Resolution 3.1 and AMD Fluid Motion Frames. Partnerships with Lenovo, Dell, and Supermicro for AMD Instinct MI300X systems were also highlighted.
– Recent PR Highlights: AMD showcased its product deployments across various sectors, including enterprise solutions, gaming, and automotive industries. The company engaged with ISVs for Ryzen AI, aiming to collaborate with 150 developers by year-end.
– MI300 Performance: AMD reported significant success with its AI data center GPU, the MI300, having sold $1 billion worth since its launch in Q4’23. The company raised its FY’24 revenue estimates for the MI300, expecting it to exceed $4 billion, up from the previously guided $3.5 billion in January.
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