AMD data center revenue surpasses Intel's for the first time, driven by strong Epyc CPU sales

Intel's $3.35 billion in data center revenue is down from $6 billion in Q1 2022

by · TechSpot

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Recap: AMD reported Q3 2024 revenues of $6.819 billion, an 18 percent increase from $5.8 billion in the same period last year. Gross profit reached $3.4 billion, up 24 percent year-over-year (YoY), while net income stood at $771 million, marking a 151 percent increase over Q3 2023.

The strong results were driven by record data center revenues of $3.549 billion, up 122 percent YoY and 25 percent sequentially, fueled mainly by high demand for EPYC CPUs. Revenue from the client segment was $1.9 billion, a 29 percent YoY and 26 percent sequential increase, largely due to robust sales of AMD's new Zen 5 desktop processors.

Revenue from the gaming segment, which includes discrete Radeon GPUs and semi-custom SoC products, was $462 million, down 69 percent from Q3 2023 and 29 percent from Q2 2024, primarily due to a decline in semi-custom revenue. AMD does not disclose GPU revenues separately.

Embedded segment revenue was $927 million, down 25 percent YoY but up 8 percent sequentially. This segment includes the new EPYC Embedded 8004 series processors for high-performance workloads and the budget-friendly Alveo UL3422 accelerator card for ultra-low latency electronic trading applications.

AMD's third-quarter financials are mostly positive, but the standout metric is its record data center revenue, which surpassed Intel's data center and AI group's earnings for the first time. Just last week, Chipzilla reported DCAI revenues of $3.3 billion, down from nearly $6 billion in Q1 2022.

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Launched last month, AMD's Epyc 9005 "Turin" processors feature new Zen 5 and 5c core architectures. The lineup is led by the EPYC 9965, which features 192 Zen 5c cores, 384 threads, a base clock of 2.5GHz, and a boost clock of up to 3.7GHz. It offers 384MB of L3 cache and has a default TDP of 500W. It retails for $14,813.

AMD's latest EPYC processors compete in the data center market with Intel's Granite Rapids and Sierra Forest lineups. Launched earlier this year, Intel's new Xeon 6 6900 "Granite Rapids" series is led by the Xeon 6980P, featuring 128 high-performance cores and 256 threads. It has a base clock of 2.0 GHz, a boost clock of 3.9 GHz, 504 MB of L3 cache, and a default TDP of 500W, with a price tag of $17,800.