AMD has managed to outpace Intel in the fourth quarter of 2024, despite some challenges in its earnings report. With a reported $3.86 billion in data center revenue, the company saw a 69% year-over-year increase, surpassing Intel’s data center revenue, which stood at $3.4 billion—a 3% decline compared to the previous year.

This marked the second consecutive quarter in which AMD bested Intel in data center earnings. AMD's performance is fueled by its diverse portfolio, including its high-performance EPYC CPUs and Instinct AI accelerators, which cater to the growing demand for AI processing power. In contrast, Intel’s data center revenue primarily comes from its Xeon processors and Gaudi AI accelerators, which have not matched AMD’s rapid expansion in the AI sector.

The growth of AMD’s data center division highlights its shift towards a more balanced business model, as the company focuses heavily on AI and high-performance computing. The success of its Instinct accelerators in particular, designed specifically for AI workloads, has been a key driver behind the company’s impressive revenue gains. AMD’s $3.86 billion data center revenue marks a significant leap from $2.28 billion in Q4 2023.

While AMD’s stock fell by 9% in premarket trading, due to missed analyst expectations for the quarter and cautious projections for the first quarter of 2025, its overall growth story remains strong. The company is aggressively expanding in the data center space, and one example of this is its $3.7 billion offer to acquire server manufacturer ZT Systems. This deal, first announced in August 2024, is expected to positively impact AMD’s financials by the end of this year.

AMD has also informed the European Commission about the deal, which is currently under review. The Commission is expected to make a decision by March 12, 2025, on whether to approve or further investigate the acquisition.

As the data center and AI markets continue to evolve, AMD’s strong performance and strategic acquisitions suggest that it is well-positioned to maintain its upward trajectory. The company’s focus on AI and its expanding portfolio of powerful processors could allow it to challenge Intel's dominance in the space moving forward.

SOURCE: WCCFTECH | PHOTO: AMD

This article was created with AI assistance.