Advanced Micro Devices (AMD) achieved strong revenue growth in Q4 2024, with total net revenue increasing by 14% year-over-year to $25.8 billion, compared to $22.7 billion in 2023. This growth was primarily driven by the Data Center and Client segments, which saw significant increases in revenue.

The Data Center segment experienced a remarkable 94% increase in net revenue, reaching $12.6 billion in 2024 compared to $6.5 billion in 2023. This growth was driven by higher sales of AMD Instinct GPUs and AMD EPYC CPUs. Operating income for the segment also increased significantly to $3.5 billion, up from $1.3 billion in 2023, despite higher R&D investments.

The Client segment's net revenue grew by 52%, reaching $7.1 billion in 2024 compared to $4.7 billion in 2023. This was attributed to a 34% increase in unit shipments and a 13% rise in average selling prices, driven by strong demand for AMD Ryzen mobile and desktop processors. The segment's operating income improved to $897 million, compared to an operating loss of $46 million in 2023.

In contrast, the Gaming segment faced a 58% decline in net revenue, falling to $2.6 billion in 2024 from $6.2 billion in 2023. This was primarily due to lower semi-custom product revenue. Operating income for the segment also decreased to $290 million, down from $971 million in 2023.

The Embedded segment's net revenue decreased by 33%, reaching $3.6 billion in 2024 compared to $5.3 billion in 2023. This decline was attributed to customers normalizing their inventory levels. Operating income for the segment fell to $1.4 billion, down from $2.6 billion in 2023.

Gross margin improved to 49% in 2024, up from 46% in 2023. This improvement was driven by a favorable revenue mix, with higher contributions from the Data Center and Client segments, partially offset by lower Gaming and Embedded revenues.

Operating income increased significantly to $1.9 billion in 2024, compared to $401 million in 2023. This improvement was primarily driven by higher revenue, despite increased R&D investments and restructuring charges.

Net income for 2024 was $1.6 billion, a substantial increase from $854 million in 2023. This growth was primarily driven by higher revenue and improved operating performance.

AMD's cash flow from operating activities more than doubled, reaching $3 billion in 2024 compared to $1.7 billion in 2023. This was driven by higher net income and non-cash adjustments, despite increases in accounts receivable and inventory levels.

The company invested $1.1 billion in 2024, primarily in short-term investments, property, and acquisitions. This was slightly lower than the $1.4 billion invested in 2023.

Financing activities resulted in a net cash outflow of $2.1 billion in 2024, primarily due to stock repurchases and debt repayment. This was higher than the $1.1 billion outflow in 2023.

AMD's R&D expenses increased by 10% to $6.5 billion in 2024, reflecting higher employee-related costs and investments in AI strategy. Marketing, general, and administrative expenses also rose by 18% to $2.8 billion, driven by increased go-to-market activities.

The company implemented a restructuring plan in Q4 2024, incurring $186 million in charges. This plan aims to drive efficiencies and align resources with growth opportunities in AI and enterprise markets, including a 4% reduction in global workforce.

AMD returned $862 million to shareholders in 2024 through stock repurchases, with $4.7 billion remaining under its repurchase program. The company also repaid $750 million in senior notes due in 2024.