AMD's total revenue this quarter was $5.835 billion, with datacenter revenue reaching $2.8 billion, doubling from last year. Su Zifeng plans to launch the MI350 in 2025, stating that it is "very competitive" with Nvidia's Blackwell.
AMD's strong performance in the second quarter drove a strong rise in its stock price. Overnight, AMD's stock price surged 7.74% to $138.44, with a market cap of $223.763 billion.
According to the financial report, AMD's total revenue this quarter was $5.835 billion, a year-on-year increase of 9% and a quarter-on-quarter increase of 7%, exceeding the previous expectations of $5.72 billion. Net income was $0.265 billion, a year-on-year increase of 881% and a quarter-on-quarter increase of 115%.
In particular, the growth rate of data center business is amazing, doubling in one year. The excellent performance of the company's AI chip has greatly boosted investor confidence.
Analysts believe that AMD's strong performance is mainly due to the strong competitiveness of its AI chip. Su Zifeng said that the development of AI chips is currently slowing down, and the supply will continue to be tight in the short term.
The data center business doubled, and the MI300 competes directly with Nvidia's H100.
According to the financial report, AMD's net revenue for data center business in the second quarter was $2.8 billion, a year-on-year increase of 115%. This is mainly due to the strong demand for the AI accelerator MI300.
As AMD's flagship product competing with Nvidia's H100, MI300 achieved sales of more than $1 billion in a single quarter, far exceeding market expectations.
AMD CEO Su Zifeng said in a call with analysts that the company's AI chip sales "exceeded expectations." She also revealed that AMD plans to launch MI325X in the fourth quarter of this year, MI350 in 2025, and MI400 in 2026, to maintain its competitive advantage in the market. "MI350 should be 'very competitive' with Nvidia's Blackwell."
Some analysts believe that Nvidia still has a leading edge over AMD. Although it doubled this year, AMD's data center business is only a small part of Nvidia's scale-one quarter is $2.8 billion, while Nvidia's is $22.6 billion, and the latter has just achieved record-breaking performance in the data center field.
Although AMD's performance is excellent, the problem of tight supply chain still exists. Su Zifeng said that although the company is trying to improve the supply chain situation, the supply of MI300 "will remain tight until 2025."
In addition to the data center business, AMD's personal computing business also performed well. Ryzen CPU sales increased 49% year-on-year, while Radeon 6000 GPU sales also achieved year-on-year growth.
Looking ahead, AMD expects that "data center GPU revenue will exceed $4.5 billion in 2024, higher than our forecast of $4 billion in April."