Recently, AMD announced during its Q4 2024 earnings call that it plans to accelerate the launch of its next-generation data center GPU series - the AMD Instinct MI350. AMD CEO Lisa Su stated that the MI350 will undergo sample testing with "key customers" within this quarter and will ramp up production and shipping by mid-year.
Lisa Su pointed out that AMD initially expected to launch the MI350 in the second half of 2025, but due to the product's progress exceeding expectations and strong customer demand, AMD decided to expedite production. She emphasized that this will enhance AMD's competitiveness in the market.
Although AMD's data center revenue still lags behind its competitor Nvidia, whose quarterly revenues often exceed billions of dollars, AMD has made significant progress over the past year, successfully attracting customers including Meta, Microsoft, and IBM. AMD stated that sales of Instinct chips will exceed $5 billion in 2024, and it expects its data center business to achieve "double-digit" growth by 2025. Last year, data center revenue accounted for about half of AMD's total revenue, reaching $3.9 billion, while AMD's overall revenue was $7.1 billion.
Lisa Su also mentioned that the demand for AI computing is very strong, and she believes the MI350 will serve as a catalyst for the growth of the data center GPU business, which is expected to grow to billions of dollars in the coming years. Investors reacted positively to AMD's Q4 performance, with AMD's stock price rising by 4.58% upon release.
Key Points:
🌟 AMD will launch the new generation data center GPU MI350 ahead of schedule, with sample testing expected this quarter.
🚀 Production plans for this GPU series have been moved up to mid-year to meet strong market demand.
💰 AMD's Instinct chip sales are projected to exceed $5 billion in 2024, with expectations for double-digit growth in the data center business.
