AMD Reports Mixed Q4 2024 Results with Strong Revenue but Data Center Segment Falls Short
Advanced Micro Devices (AMD) reported mixed fourth-quarter results for 2024, beating revenue and profit expectations but falling short in its crucial data center segment. The chipmaker posted revenue of $7.66 billion, surpassing the $7.53 billion consensus estimate, and adjusted earnings per share of $1.09, slightly above the expected $1.08. However, data center revenue, which grew 69% year-over-year to $3.86 billion, missed the $4.14 billion forecast, leading to a 6% drop in AMD’s stock during extended trading.
AMD’s data center business, driven by demand for its Instinct GPUs and EPYC CPUs, remains a key growth driver, with full-year revenue for the segment surging 94% to $12.6 billion. CEO Lisa Su highlighted the company’s strong position in the AI market, projecting “strong double-digit percentage revenue and EPS growth” for 2025. Despite this optimism, AMD faces stiff competition from market leader Nvidia in the AI chip space.
The company also saw growth in its client revenue segment, which includes chips for PCs and laptops, rising 58% to $2.3 billion. However, gaming revenue declined 59% to $563 million, reflecting weaker demand in that market. Looking ahead, AMD expects first-quarter revenue of $7.1 billion, plus or minus $300 million, slightly above analysts’ expectations of $7 billion. The company’s gross margin is projected to be around 54%.
While AMD’s long-term prospects in AI and data centers appear promising, the stock’s recent performance reflects investor concerns about its ability to compete with Nvidia and meet high expectations in the rapidly evolving AI sector.
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www.fool.comAMD Reports Fourth Quarter and Full Year 2024 Financial Results
SANTA CLARA, Calif., Feb. 04, 2025 (GLOBE NEWSWIRE) -- AMD (NASDAQ:AMD) today announced financial results for the fourth quarter and full year of 20
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