Nevertheless, on a deeper look, the Q3 results showed each strengths and challenges: while total revenue rose by 18% to $6.8 billion, gaming chip revenue plummeted 69% year-over-year, and embedded chip sales dropped 25%.
In its recent earnings call, AMD CEO Lisa Su underscored that the information center and AI business is now pivotal to the corporate’s future, expecting a 98% growth on this segment for 2024.
Su attributed the recent revenue gains to orders from clients like Microsoft and Meta, with the latter now adopting AMD’s MI300X GPUs for internal workloads.
Nevertheless, unlike AMD’s relatively targeted job reductions, Intel recently implemented far larger cuts, eliminating roughly 15,000 positions amid its restructuring efforts.
Data center and AI drive growth
AMD has been growing rapidly through initiatives resembling optimizing Instinct GPUs for AI workloads and meeting data center reliability standards, which led to a $500 million increase in the corporate’s 2024 Instinct sales forecast.
Major clients like Microsoft and Meta too expanded their use of MI300X GPUs, with Microsoft using them for Copilot services and Meta deploying them for Llama models. Public cloud providers, including Microsoft and Oracle Cloud, together with several AI startups, also adopted MI300X instances.
