Advanced Micro Devices AMD is expected to have benefited from strong Client and Data Center revenues in first-quarter 2024 earnings, set to be released on Apr 30.
AMD’s first-quarter top-line growth is expected to have benefited from an improving PC market.
The PC segment witnessed growth in the first quarter of 2024 after two years of decline. Per IDC’s latest report, 59.8 million PCs were shipped, up 1.5% from the year-ago period. Lenovo topped the shipment list, trailed by HP HPQ and Dell Technologies DELL, in terms of market share. Lenovo, HP, Dell and Apple AAPL had 23%, 20.1%, 15.5% and 8.1%, respectively.
Moreover, in terms of shipment, Lenovo and HP witnessed growth of 7.8% and 0.2%, respectively, while Dell Technologies lost 2.2%. Apple witnessed 14.6% growth, the strongest on the list.
AMD’s expanding portfolio has been a key catalyst in driving Client segment revenues. AMD has expanded its gaming portfolio with the launch of the Radeon RX 7600 XT graphics card.
Advanced Micro Devices, Inc. Revenue (TTM)
Advanced Micro Devices, Inc. revenue-ttm | Advanced Micro Devices, Inc. Quote
It has also expanded its desktop portfolio with the introduction of the new Ryzen 8000G series desktop processors for the AM5 platform, including the Ryzen 7 8700G, with the world’s most powerful built-in graphics. AMD Ryzen 8000G series features up to eight cores and 16 threads.
AMD introduced Ryzen AI to unlock more AI for desktop consumers. Moreover, AMD launched Ryzen 5000 processors that include the new Ryzen 7 5700X3D, leveraging powerful 3D V-Cache technology.
Client revenues are expected to have increased 16.3% year over year to $859.3 million, per our model.
Click here to know how AMD’s overall first-quarter performance is likely to be.
Diversified Product Portfolio: Key to AMD’s Prospects
AMD benefits from a robust product portfolio and expanding partner base. It continues to strengthen its footprint in the enterprise data center arena by leveraging the power of fourth-generation EPYC CPUs.
AMD, along with its partners, continues to offer solutions that enable greater data center consolidation. It combines CDNA 3 architecture and Zen 4 CPUs to deliver robust performance for HPC and AI workloads. Partners like Microsoft, Oracle and Dell are already using the accelerators in their systems.
AMD’s expanding portfolio, which now includes the Ryzen 8040 series processor with Ryzen AI and Instinct MI300 Series data center AI accelerators, has been noteworthy. It has introduced the ROCm 6 open software stack with significant optimizations and new features supporting large language Models.
Our model estimates for Data Center revenues are pegged at $2.27 billion, indicating a year-over-year increase of 75.6%.
AMD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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