AMD Revenue Breakdown By Segment: Data Center, Gaming, Client, etc.

A graphic processing unit. Pexels Images.

This article looks at Advanced Micro Devices (AMD)’s revenue breakdown by segment. AMD’s segments consist of data center, client, gaming, and embedded.

AMD derives its revenue primarily from data center and client. These two segments alone accounts for nearly 80% of its total revenue.

Let’s look at the details!

Investors looking for other key statistics of AMD may find more resources on these pages:

• AMD revenue by country: U.S., Japan, China, Europe, Taiwan, etc.,
• AMD profit margin breakdown: data center, gaming, client, etc., and
• AMD vs Nvidia: profit margin comparison.

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Definitions Of Segments

To help readers understand the content better, the following terms and glossaries have been provided.

Data Center: AMD’s Data Center segment primarily includes server microprocessors (CPUs), graphics processing units (GPUs), accelerated processing units(APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), Smart Network Interface Cards (SmartNICs), Artificial Intelligence(AI) accelerators and Adaptive System-on-Chip (SoC) products for data centers.

Client: AMD’s Client segment primarily includes CPUs, APUs, and chipsets for desktop, notebook and handheld personal computers.

Gaming: AMD’s Gaming segment primarily includes discrete GPUs, and semi-custom SoC products and development services.

Embedded: AMD’s Embedded segment primarily includes embedded CPUs, GPUs, APUs, FPGAs, System on Modules (SOMs), and Adaptive SoC products.

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How Does AMD Generate Revenue?

AMD generates revenue primarily through selling microprocessors, graphics processors, and related technologies. Here are some key areas:

1. **Consumer Products**: AMD produces CPUs for desktops and laptops, such as their Ryzen series, which cater to gamers and general users.

2. **Data Center Solutions**: Revenue comes from server and workstation processors, particularly the EPYC line, designed for high-performance computing and cloud services.

3. **Graphics Cards**: AMD’s Radeon graphics cards are popular among gamers and professionals requiring advanced graphics performance.

4. **Embedded Solutions**: AMD offers processors for embedded applications in various industries, contributing to its revenue.

5. **Licensing and Royalties**: AMD earns income from licensing intellectual property related to its technologies.

6. **Software and Services**: They provide various software tools and solutions that complement their hardware offerings.

AMD has broadened its revenue streams by diversifying its product portfolio and focusing on high-growth areas like data centers and gaming.

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Total Revenue

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On a consolidated basis, AMD reported total revenue of $25.8 billion in fiscal year 2024, reflecting a meaningful increase compared to the $22.7 billion recorded in fiscal year 2023. This performance underscores the company’s ability to maintain growth, albeit at a slower pace compared to previous periods.

Looking further back, AMD generated $23.6 billion in total revenue for fiscal year 2022, which represented a substantial growth of more than 40% from the $16.4 billion recorded in fiscal year 2021.

This impressive surge between 2021 and 2022 highlights a period of significant expansion for the company, potentially driven by increasing demand for its products and strategic advancements in key markets.

Over a longer-term trajectory, it is clear that AMD’s revenue growth was particularly robust during fiscal years 2020 to 2022. However, since 2022, the pace of growth has notably decelerated.

Specifically, from fiscal year 2022 to fiscal year 2024, AMD’s total revenue grew by only 9%, suggesting a phase of stabilization or potential plateau in its recent financial performance.

This trend reveals a significant shift in AMD’s growth dynamics. While the company experienced rapid expansion in earlier years, the recent slowdown could be influenced by factors such as heightened competition, market saturation in certain segments, or changing macroeconomic conditions.

Understanding these underlying causes would provide deeper insights into AMD’s current market position and future prospects.

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Growth Rates Of Total Revenue

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AMD’s total revenue showed a notable recovery in fiscal year 2024, growing by nearly 14% over the prior year. This represents a significant improvement compared to the -4% revenue growth recorded in fiscal year 2023, which marked a rare contraction in the company’s performance.

Looking further back, fiscal year 2022 showcased a robust growth rate of 44%, following an even more remarkable 68% surge in revenue during fiscal year 2021. These figures underscore the period of exceptional expansion AMD experienced earlier, driven by strong market demand, innovative product launches, and strategic market positioning.

However, the sharp deceleration in growth in the years that followed is evident when comparing the exponential gains of 2021 and 2022 to the more modest recovery in 2024.

AMD’s revenue growth trajectory highlights a significant slowdown since fiscal year 2021. While fiscal year 2024 marked a positive rebound from 2023’s decline, the overall pace of growth remains subdued compared to the explosive expansion of earlier years.

This shift may reflect a combination of market maturation, intensified competition, and evolving macroeconomic conditions impacting demand across key product segments. Understanding the specific factors driving this trend will be critical for evaluating AMD’s future growth potential and strategic direction.

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Revenue From Data Center, Client, Gaming, And Embedded Segments

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AMD’s segments consist of data center, client, gaming, and embedded. The definitions of AMD’s segments are available here: data center, gaming, client, and embedded.

Among its various business segments, AMD’s data center division stands out as the most significant revenue contributor. In fiscal year 2024, this segment generated a remarkable $12.6 billion, representing a dramatic doubling of its $6.5 billion revenue in fiscal year 2023. This impressive growth highlights the increasing importance of data center solutions in AMD’s overall business strategy, likely driven by heightened demand for server processors and advanced computing capabilities.

The client segment, while historically a strong performer, experienced considerable fluctuations in recent years. After achieving revenues of $6.2 billion in fiscal year 2022 and nearly $7 billion in fiscal year 2021, the segment faced a sharp decline in fiscal year 2023, with revenues dropping by 25% year-over-year to $4.7 billion.

However, fiscal year 2024 brought a significant turnaround, as client revenues surged by over 50% year-over-year, climbing to $7.1 billion — a recovery that demonstrates AMD’s ability to adapt to shifting market dynamics and capitalize on renewed demand in this area.

The gaming segment has faced substantial challenges. In fiscal year 2023, AMD reported $6.2 billion in revenue from gaming, but this figure plummeted by over 50% in fiscal year 2024, settling at $2.6 billion. This dramatic reduction made the gaming segment the smallest contributor to AMD’s total revenue in 2024, suggesting market-specific hurdles or competitive pressures impacting the company’s gaming-related offerings.

AMD’s embedded segment, which plays a crucial role in areas like industrial and edge computing solutions, also encountered significant revenue declines. In fiscal year 2024, this segment earned $3.6 billion, down 32% from the $5.3 billion recorded in fiscal year 2023.

Over the past three years, embedded revenue has struggled to match the performance of the data center and client segments. For instance, fiscal year 2024 results were over 20% lower than the $4.6 billion achieved in fiscal year 2022, further underscoring the challenges in this area.

Overall, AMD’s segment performance paints a mixed picture. While the data center and client segments have demonstrated resilience and growth potential, the gaming and embedded segments face notable headwinds. Understanding the factors behind these shifts — such as competitive landscapes, product cycles, or market-specific demand — will be critical for AMD as it strategizes to sustain growth and optimize its diverse portfolio.

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Percentage Of Revenue From Data Center, Client, Gaming, And Embedded Segments

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AMD’s segments consist of data center, client, gaming, and embedded. The definitions of AMD’s segments are available here: data center, gaming, client, and embedded.

From a percentage standpoint, AMD’s data center segment emerged as the dominant revenue contributor in fiscal year 2024, accounting for an impressive 49% of total sales. This marks a substantial increase from the 29% recorded in fiscal year 2023, reflecting the growing significance of data center solutions as a core driver of AMD’s business. The sharp rise in this segment’s contribution indicates strong market demand for AMD’s server processors and advanced computing offerings.

Historically, AMD’s client segment held the leading position in revenue contribution. For example, in fiscal year 2020, this segment accounted for a remarkable 53% of AMD’s total revenue, the highest level achieved by any segment during that time. However, the revenue contribution from the client segment has steadily contracted in the years that followed.

By fiscal year 2024, its share had dropped to just 27% — a significant decline, amounting to roughly half of its peak in fiscal year 2020. Despite this contraction, the client segment rebounded significantly in absolute revenue terms in fiscal year 2024, showcasing its potential for recovery.

The gaming segment has historically maintained a relatively consistent percentage of revenue contribution, hovering around 28% between fiscal years 2020 and 2023. However, fiscal year 2024 marked a dramatic downturn, with gaming’s contribution plummeting to only 10% of AMD’s total revenue.

This steep decline signifies one of the most severe setbacks for the segment, positioning it as the smallest revenue contributor in AMD’s portfolio. The challenges in the gaming segment likely reflect shifting consumer demand or competitive pressures within this market.

AMD’s embedded segment also experienced notable fluctuations in its revenue contribution. In fiscal year 2024, this segment accounted for 14% of total revenue — a sharp decline from 24% in fiscal year 2023 and lower than the 19% reported in fiscal year 2022. The consistent downward trend over the last three years underscores the challenges faced by AMD’s embedded business, which has struggled to match the performance of the data center and client segments in terms of both absolute revenue and percentage contribution.

Collectively, these trends highlight significant shifts in AMD’s revenue composition. While the data center segment has risen as the cornerstone of AMD’s business, other segments — particularly gaming and embedded — face mounting challenges. Understanding the drivers of these shifts, such as changing industry dynamics, product cycles, or competitive forces, will be crucial for shaping AMD’s strategic focus and long-term growth.

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YoY Growth Rates Of Revenue From Data Center, Client, Gaming, And Embedded Segments

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AMD’s segments consist of data center, client, gaming, and embedded. The definitions of AMD’s segments are available here: data center, gaming, client, and embedded.

In terms of segment-specific revenue growth, AMD achieved positive results in fiscal year 2024 in only two areas: the data center and client segments. The data center segment led with a staggering year-over-year growth of 94%, underscoring its critical role in driving AMD’s overall performance. Similarly, the client segment posted a robust year-over-year increase of 52%, marking a significant recovery after previous challenges.

Conversely, the gaming and embedded segments recorded substantial revenue declines in fiscal year 2024. The gaming segment suffered the most severe contraction, with revenue declining by 58% year-over-year. The embedded segment also faced significant headwinds, posting a year-over-year revenue decline of 33%.

Over a longer-term perspective, the gaming segment experienced the steepest cumulative revenue drop between fiscal years 2022 and 2024, declining by an average of 15% per year. This trend underscores a period of persistent challenges, likely influenced by shifting market dynamics, weaker consumer demand, or intensified competition.

In contrast, the data center segment has emerged as AMD’s growth engine, delivering an impressive compound annual growth rate (CAGR) of 55% from fiscal year 2022 to 2024. The client segment also exhibited moderate annual growth, achieving a CAGR of 6% over the same period, signaling steady but slower expansion. Meanwhile, the embedded segment struggled to maintain its position, reporting an average annual decline of 8% in revenue between 2022 and 2024.

These trends highlight the increasingly pivotal role of the data center segment in AMD’s revenue portfolio, while also pointing to the need for strategic adjustments in the gaming and embedded segments to navigate ongoing challenges. Understanding the underlying factors driving these growth disparities will be essential as AMD works to sustain momentum in high-performing segments and reinvigorate its lagging divisions.

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Conclusion

Essentially, the revenue trends by segment, which we observed, has collectively underscored AMD’s transformation into a data center-focused company, while highlighting the need for renewed strategies to overcome challenges in other segments.

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References and Credits

1. All financial figures presented in this article were obtained and referenced from AMD’s SEC filings, quarterly and annual reports, earnings calls, presentations, etc., which are available in AMD Financial Reports.

2. Pexels Images.

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Disclosure

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