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On July 30, local time, AMD (NASDAQ: AMD) released its second quarter financial report for fiscal year 2024. In the second quarter, AMD's revenue was US$5.835 billion, a year-on-year increase of 9% and a month-on-month increase of 7%, and its net profit (Non-GAAP) was US$1.126 billion, a year-on-year increase of 19% and a month-on-month increase of 11%.

By business unit, the data center business unit, including CPU (central processing unit), GPU (graphics processing unit), etc., had revenue of US$2.834 billion, a year-on-year increase of 115% and a month-on-month increase of 21%, setting a historical high; the client business unit, including personal computer sales, had revenue of US$1.492 billion, a year-on-year increase of 49% and a month-on-month increase of 9%; the gaming business unit had revenue of US$648 million, a year-on-year decrease of 59% and a month-on-month decrease of 30%; the embedded business unit had revenue of US$861 million, a year-on-year decrease of 41% and a month-on-month increase of 2%.

According to AMD, the revenue growth of the Data Center Division was mainly driven by the substantial growth in Instinct GPU shipments and the strong growth in sales of the fourth-generation AMD EPYC CPU, while the revenue growth of the Client Division was mainly due to the increase in sales of Ryzen processors. In addition, the revenue decline of the Gaming Division was affected by the decline in semi-custom business revenue, and the revenue of the Embedded Division was affected by customers adjusting inventory.

In terms of performance guidance, AMD expects third-quarter revenue to be approximately $6.7 billion, with a fluctuation of $300 million, which means a year-on-year increase of approximately 16% and a month-on-month increase of approximately 15%.

AMD held a conference call after releasing its second-quarter results, during which AMD CEO Lisa Su revealed some key information. For example, AMD data center GPU sales are expected to be $4.5 billion in 2024, higher than the $4 billion expected in April this year. After the delivery of AMD's MI300 chip, an accelerator for AI and high-performance computing, the chip's revenue exceeded $1 billion in the second quarter.

The MI300 series is an AI chip released by AMD at the end of last year, including the GPU MI300X, and the integrated CPU (central processing unit) core and GPU accelerator MI300A. The MI300X is comparable to the NVIDIA H100. AMD previously introduced that the performance of the MI300X AI training is on par with the NVIDIA H100; in terms of reasoning, its performance exceeds that of competing products. Taking a single server composed of 8 GPUs as an example, when running the BLOOM model with 176 billion parameters and the Llama2 model with 70 billion parameters, the performance of the MI300X platform is 1.4 to 1.6 times that of the H100 platform.

In addition, Su Zifeng introduced in the conference call that Microsoft has increased its use of MI300 chips to support the computing power of GPT-4 Turbo and to support multiple Copilot services such as Microsoft Word and Teams. Hugging Face is one of the first customers to adopt the new Microsoft Cloud Azure instance, enabling enterprises and AI customers to deploy hundreds of thousands of models on MI300 GPUs with a single click.

In June this year, AMD announced its iteration roadmap, planning to launch MI325X in the fourth quarter of this year, and to launch MI350 series and MI400 series in the next two years. Among them, M1300X and MI325X will adopt CDNA3 architecture, M1350 will adopt CDNA4 structure, and MI400 will adopt the next generation CDNA architecture. AMD will launch new product series every year in the future. In the industry's view, this speed is in line with the plan released by Nvidia.

"MI325 will be launched later this year and the MI350 series will be launched next year. Just like Nvidia's Blackwell architecture, we are also on the road to CDNA. I still think the market needs more computing," Su Lisa said in a conference call.

In addition, Su Zifeng said that from a market perspective, the demand for inference will be greater than that for training. AI PC is a very important part of the PC category, and the PC market is a good revenue growth opportunity for AMD's business.

It is worth noting that AMD has accelerated its AI deployment through investment this year. In July this year, AMD invested $665 million to acquire Silo AI, Europe's largest private artificial intelligence laboratory, which provides end-to-end AI-driven solutions. This acquisition is considered an important step for AMD to catch up with Nvidia. This year, AMD also participated in the $1 billion financing of the AI ​​data platform Scale AI.

Su Zifeng said in the conference call that in addition to the acquisition of Silo AI, AMD has invested more than $125 million in more than a dozen artificial intelligence companies in the past 12 months to expand the AMD ecosystem and maintain AMD's leading position in computing platforms. She said that AMD will continue to invest in software, which is one of the reasons for investing in Silo AI.

Su Zifeng said that AMD's main view on investment in the field of AI is that it is necessary to invest in this industry. The potential of AI is so great that it will affect the way enterprises operate. I believe there will be multiple solutions on the market, and AMD has demonstrated a very strong roadmap. For large language models, GPUs are still the preferred chips.

On July 30th local time, AMD's stock price fell 0.94% to close at US$138.44 per share. After the market, AMD rose more than 7%.