Advanced Micro Devices (AMD) announced its financial results for the second quarter of 2024, highlighting a total revenue of $5.8 billion, up 9% from the same period last year. The company's gross margin reached 49%, with operating income at $269 million and net income at $265 million. On a non-GAAP basis, the gross margin was reported at 53%, operating income at $1.3 billion, and net income at $1.1 billion.

The data center business segment was a standout performer, with a record quarterly revenue of $2.8 billion, a substantial 115% increase year-over-year, accounting for nearly half of AMD's total revenue this quarter. This surge was primarily due to the significant shipment growth of the AMD Instinct MI300 GPU and strong sales of the 4th Generation AMD EPYC CPU.

AMD's CEO, Dr. Lisa Su, stated that the rapid development of generative AI has driven higher market demands for computing power. With AI solutions integrated across all business lines, AMD's AI business continues to accelerate, and the company expects a substantial increase in revenue in the second half of the year, propelled by market demand for its Instinct series, EPYC, and Ryzen processors.

In the server market, AMD is steadily increasing its market share with the upcoming launch of the 5th Gen EPYC CPUs in the second half of the year. The Q2 financial quarter saw a record high in AMD's data center division revenue, driven by the Instinct MI300 GPU and the 4th Gen EPYC CPU sales. The company has also secured major collaborations across various sectors, including finance, technology, healthcare, retail, manufacturing, and transportation.

Dr. Lisa Su emphasized that over a third of the customers in the first half of the year were new to the EPYC deployment in data centers, showcasing AMD's appeal to new clientele. In June, AMD introduced the 5th Gen EPYC CPU "Turin," which is set to launch later this year, featuring the new Zen 5 core and offering up to 192 cores and 384 threads, along with compatibility with the latest memory and IO technologies.

In the AI data center business, AMD achieved a new record for its data center GPU revenue for three consecutive quarters, with the MI300 series revenue surpassing $1 billion for the first time. The company is progressing with its Instinct GPU roadmap, planning to launch the MI325 later this year and the MI350 series in 2025, based on the new CDNA4 architecture, aiming to expand its lead in generative AI.

AMD anticipates its data center GPU revenue to exceed $4.5 billion in 2024 and has adjusted its forecasts several times since the beginning of the year. Dr. Lisa Su believes that AMD's Instinct GPU products, with their core count and memory bandwidth advantages, are well-positioned to support current inference demands and that the company will continue to enhance its training capabilities through optimizations of the ROCm software stack.

Regarding capacity supply issues, Dr. Lisa Su reported significant progress in Q2, substantially increasing the supply volume. Despite the supply chain being tight until 2025, AMD has established strong partnerships to ensure sufficient capacity. Additionally, AMD is working with multiple HBM3-certified memory suppliers and will collaborate with various suppliers to validate HBM3E for future products.

Dr. Lisa Su concluded by highlighting the opportunities presented by the rapid development of generative AI and the increased demand for computing across all markets. AMD is set to capitalize on these opportunities by launching leading data center GPU hardware annually, integrating industry-leading AI capabilities across its product portfolio, and expanding its ROCm development with the scale and speed of the open-source community. The company is also focused on providing turnkey solutions to accelerate the deployment of AMD-based AI systems.

For the third quarter, AMD anticipates continued robust growth in both data center and client businesses, driving overall revenue to approximately $6.7 billion, a sequential increase of about 15%, with profits expected to grow by approximately 16% year-over-year. The company also expects to complete the acquisition of Silo AI for approximately $665 million in cash during the third quarter, further strengthening its investment in software capabilities.