What's good about AMD's financial report? Data center chip doubled, AI chip quarterly revenue exceeded 1 billion, supply shortage by 2025

AMD's outstanding performance in the second quarter drove its stock price sharply higher. Overnight, AMD's stock price surged 7.74% after hours to $138.44, with a market value of $223.763 billion.

According to the financial report, AMD's total revenue for this quarter was $5.835 billion, a year-on-year increase of 9% and a quarter-on-quarter increase of 7%, surpassing the previous expectation of $5.72 billion; net profit was $265 million, an 881% year-on-year increase and a 115% quarter-on-quarter increase.

In particular, the growth rate of the data center business is astonishing, doubling in just one year. The outstanding performance of the company's AI chips greatly boosted investor confidence.

Analysts believe that AMD's strong performance is mainly due to the competitiveness of its AI chips. Lisa Su stated that AI chip development is currently slowing down, leading to continued tight supply in the short term.

Data center business doubles, MI300 competes directly with NVIDIA's H100

Financial data shows that AMD's net revenue from the data center business in the second quarter was $2.8 billion, a 115% year-on-year increase. This is mainly attributed to the strong demand for the AI accelerator MI300.

As AMD's flagship product competing with NVIDIA's H100, MI300 achieved sales of over $1 billion in a single quarter, far exceeding market expectations.

AMD CEO Lisa Su stated in a call with analysts that the sales of the company's AI chips were "higher than expected." 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 AMD's data center business doubled this year, its scale is only a small part of NVIDIA's—$28 billion in a quarter for AMD compared to $22.6 billion for NVIDIA, which has also just achieved record performance in the data center field.

While AMD's performance is impressive, supply chain constraints still exist. Lisa Su mentioned that despite the company's efforts 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. Sales of Ryzen CPUs increased by 49% year-on-year, while sales of Radeon 6000 GPUs also saw a year-on-year increaseLooking ahead, AMD expects "Data center GPU revenue in 2024 to exceed $4.5 billion, higher than our forecast of $4 billion in April."