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Advanced Micro Devices will target affordable graphics cards instead of competing with Nvidia’s premium RTX 5090, as the company’s gaming sales plunge while data center revenue doubles from last year.
CEO Dr. Lisa Su announced during AMD’s fourth-quarter earnings call that the company earned $25.8 billion in revenue for 2024. “2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” said Su.
Data center sales exploded to $12.6 billion in 2024, nearly double from 2023. Meanwhile, gaming revenue plummeted 59% to $563 million compared to last year. This drop was attributed to the winding demand for both graphics cards and console chips from Microsoft and Sony.
“Semi-custom sales declined as expected as Microsoft and Sony focused on reducing channel inventory,” Su noted.
Su confirmed during the call that the new RX 9070 and RX 9070 XT graphics cards will launch in early March. And this time around, AMD isn’t trying to compete with Nvidia’s top-end RTX 5090.
Both cards pack 16GB of memory and use AMD’s new RDNA 4 architecture to compete with Nvidia’s RTX 5070 series. These mid-to-high-range hardware products are designed to attract gamers seeking high-performance graphics at lower costs.
“Our focus with this generation is to address the highest volume portion of the enthusiast gaming market,” Dr. Su said. “RDNA 4 delivers significantly better ray tracing performance and adds support for AI-powered upscaling technology that will bring high quality 4K gaming to mainstream players.”
The company’s FSR 4 upscaling technology will do the heavy lifting for 4K gaming. This upscaler is similar to Nvidia’s DLSS but with AMD’s spin on artificial intelligence(AI)-powered graphics enhancement.
Frank Azor, AMD’s gaming chief, hinted these cards might undercut RTX 5070’s ($549) pricing by $75-100, making them more appealing to budget-conscious gamers. Azor also promised that the full specifications and details would be “coming soon” on X (formerly Twitter).
AMD’s client segment, which sells Ryzen processors, earned $2.3 billion in quarterly revenue, up 58% from last year. Data center revenue reached $3.9 billion in the fourth quarter, a 69% increase from 2023.
The company expects revenue of $7.1 billion in the first quarter of 2025, a 30% jump from last year, and a 54% gross margin. AMD is betting big on its new strategy of dominating the mid-range GPU market while its data center business continues to surge.
