AMD: MI300 AI shipments helped drive Q1 revenue growth

AMD reported first quarter 2024 earnings that included revenue of $5.47 billion, just above the consensus estimate, as CEO Lisa Su touted the firm’s massive year-over-year revenue growth in its Data Center and Client segment

The overall revenue mark was just above consensus analyst estimates for the quarter of $5.45 billion, and represented a 2% increase in revenue compared to the first quarter of 2023, but an 11% decline from the fourth quarter of 2023.

The good news, according to Su is that AMD’s new and closely-watched Instinct MI300 AI accelerator chips played a key role in driving a Data Center segment revenue surge during Q1. The $2.3 billion in sales for that segment was a quarterly record, and represented an 80% year-over-year jump. In a sequential comparison, the growth was more modest, with a 2% vs. Q4 2023, as AMD noted that growth driven by the first full quarter of AMD Instinct GPU sales was offset somewhat by a seasonal decline in server CPU sales.

Meanwhile, the Client segment delivered $1.4 billion in revenue in Q1 2024, up 85% year-over-year driven primarily by AMD Ryzen 8000 Series processor sales. However, that revenue mark represented a decline of 6% sequentially.

The bad news came from AMD’s Gaming segment, which posted Q1 revenue of $922 million, down 48% year-over-year and 33% sequentially due to a decrease in semi-custom revenue and lower AMD Radeon GPU sales, AMD said. Embedded segment revenue also failed to impress, coming in at $846 million, down 46% year-over-year and 20% sequentially as customers continued to manage their inventory levels,the company added.

AMD also provided an outlook for the second quarter that includes a sequential increase in revenue to $5.7 billion, which at first glance appeared to be what analysts were expecting.