AMDs gaming revenue falls 59%, but company still posts a 9% year-over-year revenue increase
Sales of AMD's gaming hardware dropped a whopping 59% in the second quarter of 2024 as shipments of both its graphics cards and processors for Microsoft's Xbox and Sony's PlayStation game consoles declined. Nonetheless, record sales of datacenter products as well as massively increased sales of processors for client PCs more than offset declined gaming hardware shipments.
Not all of AMD's business units performed that well. Sales of AMD's gaming hardware — comprising of Radeon graphics processors and system-on-chips for Microsoft's Xbox and Sony's PlayStation — dropped sharply to $648 million in Q2 2024, down 59% year-over-year. Still, the business division remained profitable and earned $77 million in operating income.
AMD's revenue for its embedded segment was $861 million in Q2 2024, reflecting a 41% decline compared to the same quarter a year ago, as customers continued to adjust their inventory levels. However, revenue increased by 2% from the previous quarter, a good sign for AMD's Xilinx business unit.
5 Comments
I think discretionary consumer spending in general has tanked. Difficult to judge revenue for a company without knowing the overall market and yearly cycles.
Unsurprising as both home console and GPU sales have cooled since “The Great Staycation”
Well… yes.
AMD has a limited number of wafer allocations at TSMC.
Data Center Revenue is up 115% YoY to $2.8 billion.
This has come from the lower margin capacity of gaming and embedded.
AMD’s doing the same thing as Nvidia, manufacturing fewer gaming GPUs, fewer embedded APUs, to put more Instinct MI300s out there.
Everyone’s manufacturing limited, so it makes sense to allocate what manufacturing they do have into the highest margin segments. That’s Data Center.
With Intel tripping over their own dicks with the 13-14 series debacle I bet those CPU sales skyrocket.
I guess the AI gold rush makes any hardware company focus on it.