AMD's AI GPU division has only been around for a little over a year, but it is already bigger than its entire CPU business

AMD announced its Instinct MI300 GPU, which is arguably the first GPU that is truly competitive for AI inferencing, training and inference, in November of last year. It's only been selling well in recent months. It's already bringing in as much revenue as AMD's entire processor operations.

This includes CPUs used for desktop PCs and laptops as well as CPUs for servers. AMD CEO Lisa Su said this yesterday, during the company's latest earnings call for financial experts, held by Seeking Alpha.

Su was responding to an executive bean counter at the Swiss bank UBS who was trying to find out exactly how much AMD had made in recent months from its fledgling AI GPU operations.

Analysts estimate that AMD generated revenues of around $1.5 billion for September alone, and predict that the following months will be even higher. Su replied:

"We actually performed better than our initial expectations in the Data Center GPU Business." You would think that the business was greater than $1.5 billion in September of this year. "Our [AI] GPU business is now approaching the size of our CPU business."

This achievement is no doubt the reason why AMD's shares are now worth 2.5 times what they were in mid-2022. Everything is relative. AMD's AI GPU sales, while impressive in isolation, pale in comparison to Nvidia.

Another analyst stated that Nvidia could achieve an incredible $50-$60 billion in AI GPU sales by 2025, while AMD may only reach $10 billion.

AMD's gaming business is a very small part of its overall business. The "Gaming' business, which includes both gaming graphics cards for PCs and the AMD-engineered APUs in the Xbox and PlayStation consoles accounted for just $462 millions of revenue during the most recent quarter.

AMD's total revenue is just 6.8%. And it's shrinking. AMD's desktop and laptop CPUs also brought in nearly $2 billion during the same period.

You have to wonder what AMD is doing when it comes down to PC GPUs, when there's so many other places to make money. On the other hand there's no guarantee the AI GPU market is going to continue to boom. AMD's core competency is graphics chips for PCs.

Let's hope AMD is committed to improving gaming graphics. Lisa Su confirmed that AMD's next generation cards will be available "early" by 2025.