AMD doubles cash flow as data centre demand drives record revenues

February 05, 2025 02:31 PM

AMD’s data centre arm contributed around 50% of its annual revenue, with Nvidia’s biggest rival reporting an “outstanding year” with demand increasing for its GPUs and CPUs.

AMD’s financial results for the fourth quarter and full year of 2024 showed that its net income grew by 26% while more than doubling its free cash flow from 2023.

The chipmaking giant recorded a fourth-quarter revenue rise of 51% to $7.7 billion, while 2024’s revenue rose by 49% to $25.8 billion against an operating come of $1.9 billion in what were record results for the business. CEO Lisa Su also confirmed the company is bringing forward the release of its next-gen GPU, the MI350 series.

“We had previously stated that we thought we would launch that in the second half of [2025]... there is very strong customer demand for that. So, we are actually going to pull that production ramp into the middle of the year,” Su told investors.

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The MI350 series was unveiled last June during Computex, with AMD claiming it offers 35 times better performance running inference compared to the current-gen MI300 series.

While AMD gave a glimpse at the MI350’s eventual successor last October, the MI355X, by making the next-gen GPU available to businesses sooner — especially considering delays experienced by rivals Nvidia with its Blackwell line of GPUs — CEO Su told investors the move will improve AMD’s “relative competitiveness”.

“The overall data centre business will grow strong double digits certainly, both the server product line, as well as the data centre GPU product line, will grow strong double digits,” Su told investors.

“From the shape of the revenue you would expect that the second half would be stronger than the first half, just given [the] MI350 will be a catalyst for the data centre GPU business. But overall, I think we are very pleased with the trajectory of the data centre business in both 2024 and then going into full year 2025.”

AMD’s data centre arm reported revenues of $3.9 billion in Q4, up 69% year over year, with the rise attributed to increased demand for both its GPUs but also its EPYC CPUs which power everything from HPE’s new server solutions to El Capitan, the world’s most powerful supercomputer.

For 2024, AMD reported a record $12.6 billion revenue, an increase of 94% compared to the prior year, again being driven by demand for both its Instinct GPUs and EPYC CPUs.

Jean Hu, EVP and chief financial officer, said the data centre performance was “consistent” with the business’s expectations.

CEO Su suggested that the first half of 2025 for AMD’s data centre segment will “be consistent with the second half of '24”.

“That's true for both businesses on the server side as well as the data centre GPU side,” Su added.