AMD benefits from AI gold rush after Nvidia
AMD is also benefiting from the AI gold rush, following Nvidia.
AMD, Intel’s long-time rival, recorded a record year in 2024—thanks largely to its AI accelerators—generating over seven billion US dollars in revenue.
Key highlights at a glance
- Intel reported an operating loss of $11.7 billion in 2024, while AMD increased its operating profit to $1.9 billion.
- AMD’s Data Center division achieved $12.6 billion in revenue in 2024, tripling its operating profit to $3.5 billion.
- Instinct AI accelerators contributed over $5 billion to AMD’s Data Center revenue.
- AMD’s Client division increased its 2024 revenue by 52% to $7.1 billion and delivered an operating profit of $897 million.
- Intel had to put plans for a chip factory in Magdeburg on hold, while AMD benefits from the AI boom.
For years, Intel, the CPU king, outpaced its smaller rival AMD. But now the company is facing profit declines and, as a result, has had to suspend plans for a chip factory in Magdeburg. Critics argue that Intel has missed the AI train.
In contrast, AMD has significantly closed the gap with its larger competitor through new processors and, especially, its Instinct-branded AI accelerators. The Santa Clara-based company is now also capitalizing on the AI gold rush.
According to heise online, Intel’s revenue in 2024 was only just over twice that of AMD, which alone generated nearly $7.7 billion in the fourth quarter. While Intel posted an annual operating loss of $11.7 billion, AMD boosted its annual operating profit by 374 percent to $1.9 billion.
In the fourth quarter of 2024, AMD’s operating income surged 155 percent to $871 million, while Intel’s operating profit plummeted 84 percent to $412 million.
Instinct cards boost data center division
AMD also significantly improved its cash flow—up 214 percent to $1.3 billion in the fourth quarter alone and by 84 percent to $3 billion for the full year 2024.
The Data Center division alone delivered a 94 percent increase in annual revenue to $12.6 billion and tripled its operating profit to $3.5 billion, driven by both Epyc processors and Instinct accelerators.
According to Heise, CEO Lisa Su has for the first time provided specific figures on the Instinct accelerator cards. They contributed more than five billion dollars to the $12.6 billion in revenue—approaching nearly half of the pure data center revenue.
The Client division, which primarily includes Ryzen CPUs for desktops and notebooks, also showed strong growth. Annual revenue rose 52 percent to $7.1 billion. After a slight loss the previous year, operating profit returned to positive territory in 2024, reaching $897 million. With this, AMD continues its success trajectory in this segment and is increasingly establishing itself as a serious competitor in the fiercely contested semiconductor market.
Frequently Asked Questions
Why is Intel losing ground to AMD?
In 2024, Intel reported an annual operating loss of $11.7 billion. Additionally, the company missed the AI boom, putting it at a competitive disadvantage.
How did AMD’s operating profit develop compared to Intel’s?
AMD increased its annual operating profit by 374% to $1.9 billion. In contrast, Intel saw an 84% decline in operating profit, dropping to $412 million.
What contribution did AMD’s Instinct AI accelerators make to revenue?
The Instinct accelerators contributed over $5 billion to AMD’s data center revenue of $12.6 billion, accounting for nearly half of the total.
How did AMD’s Client segment revenue perform in 2024?
Client segment revenue rose 52% in 2024 to $7.1 billion. Operating income reached $897 million, a significant turnaround from a loss in the previous year.
What impact has the AI boom had on AMD and Intel?
AMD is benefiting strongly from the AI boom, particularly through its Instinct accelerators. Intel, by contrast, is seen as falling behind and has had to delay major investments, including its project in Magdeburg.
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