On April 30th, local time, AMD (Super Power Semiconductor), which is expanding its presence in the chip industry, disclosed its Q1 2024 results: achieving a revenue of $5.5 billion, a gross profit margin of 47%, operating income of $36 million, net income of $123 million, and diluted earnings per share of $0.07. It is worth noting that AMD has raised its annual sales forecast for MI300 AI accelerator chips this year from $3.5 billion at the beginning of the year to $4 billion.
Lisa Su, Chairman and CEO of AMD, stated that the data center and client business units experienced high year-on-year growth in the first quarter, mainly due to the increased shipment of AMD Instinct series AI accelerators and the adoption of Ryzen and EPYC processors in the market.
Looking at the business departments, in the first quarter of 2024, AMD Data Center Division's revenue was $2.3 billion, an 80% year-on-year increase. AMD stated that the above growth was mainly due to the first complete quarterly sales of AMD Instinct GPUs, partially offsetting the seasonal decline in server CPU sales.
The revenue of the client business unit, including personal computer sales, was 1.4 billion US dollars, an increase of 85% year-on-year. AMD stated that the above growth is mainly due to the sales of AMD Ryzen 8000 series processors.
However, the performance of the gaming business unit in the first quarter was not optimistic. According to data provided by AMD, the company's gaming division achieved a revenue of $922 million in the first quarter of this year, a year-on-year decrease of 48%. Regarding this, AMD stated that the main reasons were a decrease in revenue from its semi custom business and a decrease in sales of AMD Radeon GPUs. The embedded business unit achieved a revenue of 846 million US dollars, a year-on-year decrease of 46%, mainly due to customers continuing to adjust inventory levels.
In terms of performance guidance, AMD expects a revenue of approximately $5.7 billion in the second quarter of this year, with a fluctuation of $300 million. The midpoint of the range is equivalent to a year-on-year growth of about 6% and a month on month growth of about 4%, which is consistent with market expectations of $5.72 billion.