Advanced Micro Devices (AMD) reported fourth-quarter earnings that beat analyst expectations despite a disappointing data center sales performance. The chipmaker’s revenue grew 24% year-over-year, reaching a record $7.66 billion, exceeding the consensus estimate of Visible Alpha. Earnings came in at $482 million, or 29 cents per share, below the previous year’s figures but adjusted earnings of $1.78 billion, or $1.09 per share, surpassed expectations.
The revenue gain was largely driven by demand for AMD’s artificial intelligence chips, which saw a 69% increase to a record $3.86 billion. However, this still fell short of the expected $4.12 billion. Looking ahead, AMD forecasts double-digit growth in revenue and earnings per share for the year, driven by strong demand for its products.
CEO Lisa Su expressed optimism about the company’s prospects, citing recent model breakthroughs and AI infrastructure investments as key factors driving growth opportunities. The stock initially fell over 8% after the results but has since recovered, with shares now down by more than a quarter of their value in the past year due to concerns about competition from Chinese firms like DeepSeek.
Analysts have suggested that AMD is well-positioned to benefit from increased spending on AI by US tech giants, who are expected to ramp up their investments as competition intensifies.
Source: https://www.investopedia.com/amd-earnings-q4-fy-2024-update-8785906