AMD (AMD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $6.8B, up 18% year-over-year, driven by record Data Center and strong Client segment growth, partially offset by declines in Gaming and Embedded segments.

• Data Center segment revenue hit a record $3.5B, up 122% year-over-year, led by Instinct GPU and EPYC CPU sales.

• GAAP net income was $771M, up 158% year-over-year; non-GAAP net income was $1.5B; GAAP EPS $0.47, non-GAAP EPS $0.92, both up over 30% year-over-year.

• Announced acquisition of ZT Systems to expand AI data center capabilities, expected to close in H1 2025; completed Silo AI acquisition.

• Returned $250M to shareholders in Q3 via stock repurchases; $4.9B remains authorized.

Financial highlights

• Q3 2024 revenue: $6.8B, up 18% year-over-year and 17% sequentially.

• GAAP gross margin improved to 50% (up 3 points year-over-year); non-GAAP gross margin was 54%.

• GAAP operating income was $724M (up 223% year-over-year); non-GAAP operating income was $1.7B (up 34%).

• Cash and equivalents at $4.5B at quarter-end; inventories up to $5.4B.

• Free cash flow was $496M; adjusted EBITDA for Q3 was $1.89B.

Outlook and guidance

• Q4 2024 revenue expected at ~$7.5B (±$300M), up 22% year-over-year and 10% sequentially, led by Data Center and Client growth.

• Non-GAAP gross margin for Q4 projected at ~54%; operating expenses at ~$2.05B.

• Data Center GPU revenue for 2024 now expected to exceed $5B, up from prior $4.5B guidance.

• ZT Systems acquisition expected to close in H1 2025, subject to regulatory approvals.

• Management expects international sales to remain a significant portion of revenue.