Advanced Micro Devices (AMD) released its fourth-quarter earnings report, beating Wall Street estimates for sales and earnings. However, the stock fell 6% in extended trading after missing data center revenue targets.
The chipmaker reported $7.66 billion in revenue, surpassing expectations of $7.53 billion. Earnings per share came in at $1.09, slightly above analyst projections of $1.08. AMD’s adjusted earnings per share excluded acquisition costs and inventory losses.
In the data center segment, AMD saw a 69% year-over-year increase in sales to $3.86 billion, driven by strong demand for its graphics processing units (GPUs) for artificial intelligence. However, this was short of analyst predictions of $4.14 billion. The company attributed the miss to sales growth in other areas, such as its Instinct GPUs and EPYC CPUs.
AMD’s client revenue segment saw a 58% year-over-year increase to $2.3 billion, driven by strong demand for desktops and laptops. The gaming GPU segment reported a 59% decline to $563 million, while the embedded chips division saw a 13% drop in sales.
For the full year, AMD’s data center division revenue grew 94% to $12.6 billion. The company is optimistic about its long-term growth trajectory, driven by the rapid scaling of its data center AI franchise. CEO Su stated that this will lead to tens of billions of dollars in annual revenue over the coming years.
Despite missing data center revenue targets, AMD’s strong performance and positive outlook have investors optimistic about the chipmaker’s future prospects.
Source: https://www.cnbc.com/2025/02/04/amd-earnings-report-q4-2024.html