AMD Outsells Intel In the Datacenter For the First Time

During the fourth quarter of 2024, AMD surpassed Intel in datacenter sales for the first time in history -- despite weaker-than-expected sales of its datacenter GPUs. Tom's Hardware reports: AMD's revenue in Q4 2024 totaled $7.658 billion, up 24% year-over-year. The company's gross margin hit 51%, whereas net income was $482 million. On the year basis, 2024 was AMD's best year ever as the company's revenue reached $25.8 billion, up 14% year-over-year. The company earned net income of $1.641 billion as its gross margin hit 49%. But while the company's annual results are impressive, there is something about Q4 results that AMD should be proud of.

Datacenter business was the company's primary source of earnings, with net revenue reaching record $3.86 billion in Q4, marking a 69% year-over-year (YoY) increase and a 9% quarter-over-quarter (QoQ) rise. Operating income also saw substantial improvement, surging 74% YoY to $1.16 billion. By contrast, Intel's datacenter and AI business unit posted $3.4 billion revenue, while its operating income reached $200 million. But while the quarter marked a milestone for AMD, market analysts expected AMD to sell more of its Instinct MI300-series GPUs for AI and HPC. You can view AMD's 2024 financial results here.

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