AMD Posts Strong Q4 Earnings, Gaming Division Lags Behind

AMD reported its fourth-quarter earnings yesterday, with revenue reaching $7.7 billion and a 51% profit margin. The data center division saw significant growth, driven by Epyc server processors and Instinct AI accelerators, while Ryzen CPUs also contributed to the company’s client segment earning $2.3 billion.

However, the gaming division underperformed, with earnings of only $563 million, down 59% from last year. AMD attributed this decline to lower sales of dedicated graphics cards and semi-custom chips used in game consoles. Market research suggests that GPU buyers have been lukewarm towards AMD’s Radeon RX 7000 series.

But a new line of Radeon RX 9000-series cards is on the horizon, set to launch in early March. The mid-range 9070 and 9070 XT models aim to bring high-quality gaming to mainstream players at competitive prices. This may be an opportunity for AMD to regrow its market share and challenge Nvidia’s dominance in the graphics card space.

Source: https://arstechnica.com/gadgets/2025/02/amd-promises-mainstream-4k-gaming-with-next-gen-gpus-as-current-gen-gpu-sales-tank