Home ยป AMD’s Nearly Half of Revenue Stemming from Datacenter Business, Following NVIDIA’s Footsteps.

AMD’s Nearly Half of Revenue Stemming from Datacenter Business, Following NVIDIA’s Footsteps.

The Verge website observed that in AMD’s Q2 2024 earnings report, revenue from the Data Center business (Epyc CPUs and Instinct GPUs) surged by a staggering 115%, now accounting for nearly half (48.5%) of AMD’s overall revenue.
AMD categorizes its revenue into 4 business groups: Data Center, Client (Ryzen/Threadripper), Gaming (including Radeon gaming GPUs and console chips), and Embedded chips. In the recent quarter, Data Center and Client businesses witnessed growth, while Gaming and Embedded businesses experienced a decline.
AMD’s new direction focuses heavily on the Data Center, mirroring NVIDIA’s current strategy. Currently, revenue from the Data Center segment constitutes about 87% of the company’s total revenue (22.6 billion out of 26 billion dollars). Despite the comparison, AMD’s Data Center revenue still stands at approximately 12% of NVIDIA’s Data Center revenue (10 times smaller).
Source: AMD, AMD (PDF), The Verge

TLDR: AMD’s Q2 2024 earnings report shows a significant surge in revenue from the Data Center segment, making up nearly half of their total revenue. The company is strategically shifting towards Data Center dominance, in alignment with NVIDIA’s focus on the same segment.

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