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AMD Stock Slips After In-Line Q4: Lisa Su Touts ‘Exciting Time’ For Chipmaker Driven By AI

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Advanced Micro Devices, Inc. (NASDAQ:AMD) reported Tuesday after the market close with fourth-quarter results that came in line with expectations, with strong Data Center revenue helping to offset weakness in the Embedded and Gaming segments. The chipmaker guided its first-quarter revenue above the consensus. The stock fell in after-hours trading.

AMD’s Key Numbers: Santa Clara, California-based AMD reported fourth-quarter non-GAAP earnings per share of 77 cents per share on revenue of $6.17 billion.

Here’s how the results compare with the Street estimates and prior year results:

Q4’23 Actuals Q4’23 Consensus* Q4’23 Guidance Q4’22 Q3’23 Y-o-Y Change Q-o-Q Change
Revenue $6.17B $6.12B $6.1B +/- $300 M $5.6B $5.8B
Non-GAAP EPS 77 cents 77 cents N/A 69 cents 70 cents
Non-GAAP gross margin 51% N/A 55.1% 51% 51%

* according to Benzinga Pro data

CEO Lisa Su lauded the company’s quarterly performance. “We finished 2023 strong, with sequential and year-over-year revenue and earnings growth driven by record quarterly AMD Instinct GPU and EPYC CPU sales and higher AMD Ryzen processor sales,” she said.

“Demand for our high-performance data center product portfolio continues to accelerate, positioning us well to deliver strong annual growth in what is an incredibly exciting time as AI re-shapes virtually every part of the computing market.”

AMD’s outperformance comes close on the heels of peer Peer Intel Corp.’s (NASDAQ:INTC) fourth-quarter results that sent the latter’s shares down by about 12%,

See Also: Best Artificial Intelligence Stock

AMD’s Segment Results: In line with expectations, AMD’s Data Center business reported solid performance, thanks to solid performance of the fourth-gen EPYC server processor sales and AMD Instinct GPUs.

Q4’23 Revenue Y-o-Y Change Q-o-Q Change % Contribution
Data Center $2.3B +38% +43% 37.2%
Client $1.5B +62% -25% 25.3%
Gaming $1.4B -17% -9% 22.7%
Embedded $1.1B -24% -15% 17.8%

KeyBanc Capital Markets analyst John Vinh had anticipated improving Genoa processor demand despite the weakness seen in traditional servers. Citing checks, the analyst said MI300X AI accelerator chips were seeing positive inflection in customer traction.

The Client segment’s softness is a function of continued weakness in the PC market. Data…

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