Advanced Micro Devices (AMD) has released its Q4 earnings call, and the results paint a positive picture of the company’s growth opportunities. The data center segment emerged as a standout performer, with revenue surging 69% year-over-year to a record $3.9 billion.
The robust adoption of EPYC CPUs and MI300X deployments with major cloud partners drove this growth. AMD’s strategic emphasis on AI and data center innovations is clearly paying off, setting a strong foundation for future advancements.
In the client segment, revenue increased by 58% year-over-year to a record $2.3 billion, driven by strong demand for Ryzen processors and record OEM PC sell-through. The company’s ability to meet consumer demand highlights its capacity to capitalize on the rising interest in high-performance computing solutions.
Gross margin expanded by 300 basis points to 54%, coupled with a 25% year-over-year growth in earnings per share, demonstrating strong operating leverage and efficient management.
However, challenges persist in the gaming and embedded segments. The gaming segment faced revenue decline of 59% year-over-year to $563 million, while the embedded segment experienced a 13% year-over-year decline to $923 million.
Despite these hurdles, AMD’s forward-looking guidance is optimistic, with expectations for double-digit revenue and EPS growth in 2025. The company projects first-quarter revenue of $7.1 billion, driven by continued growth in the data center segment and significant expansion of its AI business.
Source: https://www.tipranks.com/news/company-announcements/amd-earnings-call-growth-in-data-center-and-ai