AMD’s revenues for Q1 2024 rose to $5.5 billion, a year-over-year improve pushed by the unimaginable demand for all issues AI. AMD’s ‘Data Center’ revenue noticed a rise of 80% year-over-year to ship $2.3 billion, with ‘Client’ revenue seeing a year-over-year improve of 85% in revenue to hit $1.4 billion. 2VIEW GALLERY – 2 IMAGES Products in AMD’s AI Instinct AI GPU lineup, server-grade EPYC CPUs, and the Ryzen 8000 Series of processors for desktops and cellular gadgets are driving gross sales and progress. But it isn’t all sunshine and AI rainbows, as AMD’s ‘Gaming’ revenue noticed an enormous decline, down 48% year-over-year – which offset AMD’s revenue for the quarter.Gaming covers AMD’s PlayStation and Xbox console {hardware}, Radeon GPUs for PC gaming, and SoC gadgets that mix Ryzen processing with Radeon graphics. The dramatic lower in gaming {hardware} revenue matches Microsoft’s current report stating that Xbox {hardware} gross sales decreased by 31% year-over-year.In its monetary report for the quarter, AMD particularly mentions decrease AMD Radeon GPU gross sales and “a lower in semi-custom revenue” as the motive for the decline. This consists of each PlayStation 5 and Xbox Series X|S consoles, which at the moment are getting into the second half of their lifespan.The revenue drop locations some uncertainty on the way forward for AMD’s Gaming sector, regardless that the lower in semi-custom revenue for consoles was anticipated to drop. AMD is anticipated to launch its next-gen RDNA 4-powered GPUs later this 12 months, along with offering the boosted GPU {hardware} present in the PlayStation 5 Pro, so it will likely be attention-grabbing to see what impression this has. It does not matter in the brief time period. Data Center and Client revenue make up over two-thirds of all AMD revenue, and with each sectors rising robust, AMD is emboldened to proceed investing in AI and cutting-edge CPUs.”We delivered robust first quarter outcomes with our Data Center and Client segments every rising greater than 80% year-over-year pushed by the ramp of MI300 AI accelerator shipments and the adoption of our Ryzen and EPYC processors,” stated AMD Chair and CEO Dr. Lisa Su. “This is an extremely thrilling time for the trade as widespread deployment of AI is driving demand for considerably extra compute throughout a broad vary of markets. We are executing very effectively as we ramp our information heart enterprise and allow AI capabilities throughout our product portfolio.””AMD began the 12 months robust, delivering file quarterly Data Center section revenue,” stated AMD EVP, CFO, and Treasurer Jean Hu. “In addition, we drove stable gross margin growth. Moving ahead, we’re effectively positioned to proceed driving revenue progress and margin enchancment whereas investing in the massive AI alternatives forward.””If you take a look at gaming, demand has been fairly weak,” Jean Hu added in an analyst name. “That’s well-known additionally [they have] stock points. We guided down greater than 30% in the first and second quarters, and the second half might be decrease than the first half. That is how we’re in search of the gaming enterprise this 12 months.”
https://www.tweaktown.com/news/97942/amd-gaming-revenue-declined-massively-year-over-cfo-says-the-demand-is-weak/index.html
AMD gaming revenue declined massively year-over-year, CFO says the demand is ‘weak’
