Advanced Micro Devices reported fourth-quarter earnings that exceeded market forecasts on Tuesday (Wednesday AEDT), but its stock fluctuated in after-hours trading.
The company posted adjusted earnings per share of $1.09, matching market expectations, while revenue came in at US$7.66 billion, surpassing the projected $7.53 billion.
For the first quarter of 2025, AMD anticipates revenue between $6.8 billion and $7.4 billion, aligning with the consensus estimates. The company also projected a gross margin of approximately 54%.
AMD’s segment performance showed varied results. The data centre business generated a record $3.9 billion in revenue, missing the expected $4.15 billion but still reflecting a 69% year-over-year increase.
The client segment outperformed expectations, reporting $2.3 billion in revenue against estimates of $1.94 billion, marking a 58% annual rise.
The gaming division contributed $563 million, exceeding the projected $489 million but experiencing a significant 59% decline from the previous year.
Despite initially rising 4% on the revenue beat, AMD shares later reversed course, declining around 4.2% due to cautious forward guidance.
AMD CEO Lisa Su emphasised the company’s momentum, stating, “2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth.
Data Centre segment annual revenue nearly doubled as EPYC processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue. Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing.”
At the time of writing, Advanced Micro Devices (NASDAQ: AMD) stock was trading at US$115.07, down 3.6% from Tuesday's close of $119.5. The stock reached a day low of $114.79 and a day high of $119.85. AMD's market cap stands at US$193.93 billion.
