AMD posted record data center revenues of $3.5 billion for Q3 2024, representing a year-over-year (YoY) increase of 122 percent.
The company said the growth was primarily driven by AMD Instinct GPU and AMD Epyc CPU sales. For the third quarter, AMD’s data center revenue accounted for 52 percent of total revenue, a figure which is expected to increase in Q4.
Data center segment operating income was $1 billion, or 29 percent of revenue, compared to $306 million or 19 percent a year ago, while the data center segment operating income more than tripled compared to the prior year, driven by higher revenue and operating leverage.
Total revenue for the quarter was $6.8 billion, up 18 percent YoY.
In the earnings call, AMD CEO Dr. Lisa Su said that the company’s product portfolio is “getting stronger with the annual cadence” with the launch of its latest data center GPU MI325X later this quarter, followed by the release of the MI355X in the second half of 2025.
When questioned about whether, despite the company’s successes, it remains a year behind market leader Nvidia, Su disagreed, saying that, while the MI300 might have been behind the H100 at launch, because the H100 was in the market for such a long time, AMD has accelerated its road map and “closed a good part of that gap.”
“I think MI325X is a great product. It's going to compete very well with H200 and the MI350 series will compete very well with Blackwell,” she said, adding that it should also be assumed that the company was “working with all the large customers out there.”
AMD introduced the MI325X at its recent Advancing AI event. The new accelerator is built on the CDNA 3 architecture and features 256GB of HBM3E, in addition to supporting 6Tbps and offering 1.8x more capacity and 1.3x more bandwidth than Nvidia's H200 GPU.
It also has 1.3x the peak theoretical FP16 and FP8 compute performance of the H200, the company claims.
Looking forward, Su said it is expected that the AI accelerator total addressable market will grow by more than 60 percent annually to $500bn in 2028, noting this is roughly equivalent to annual sales for the entire semiconductor industry in 2023.
“This is an incredibly exciting time for AMD as the breadth of our technology and product portfolios combined with our deep customer relationships and diversity of markets we address, provide us with a unique opportunity as we execute our next arc and make AMD the end-to-end AI leader,” Su said.