How Do They Make Money?

AMD (Advanced Micro Devices) is a custom-design silicon provider.  They’re the company behind Ryzen CPUs, Radeon GPUs, and the power behind some console products (Sony PlayStation 5, Microsoft Xbox Series S and X game consoles, and the Valve Steam Deck PC), but their data center segment is their largest and fastest-growing revenue stream due to the rise of AI (it increased by 93.64% compared to 2023 and now accounts for 48.78% of their total revenue).

Four reportable segments are:

• Data Center segment: primarily includes AI accelerators, server central processing units (CPUs), graphic processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), field programmable gate arrays (FPGAs), Smart Network Interface Cards (SmartNICs), and Adaptive System-on-Chip (SoC) products for data centers

• Client segment: primarily includes CPUs, APUs, and chipsets for desktops and notebooks

• Gaming segment: primarily includes discrete GPUs, semi-custom SoC products and development services

• Embedded segment: primarily includes embedded CPUs, GPUs, APUs, FPGAs, system of modules (SOMs), and Adaptive SoC products