Advanced Micro Devices (AMD) posted fourth-quarter revenue and adjusted earnings that beat expectations, but data center sales came up short.
The chipmaker’s revenue grew 24% year-over-year to a record $7.66 billion, above the analyst consensus compiled by Visible Alpha. Earnings came in at $482 million, or 29 cents per share, down from $667 million, or 41 cents per share, a year earlier, falling short of expectations. However, on an adjusted basis, AMD’s earnings of $1.78 billion, or $1.09 per share, beat expectations.
The revenue gains came as AMD’s data center sales climbed 69% to a record $3.86 billion driven by demand for the company’s artificial intelligence chips, but still missed the $4.12 billion called for by analysts.
AMD Forecasts Double-Digit Growth This Year on Strong Demand
Looking ahead, AMD said it anticipates first-quarter revenue of $6.8 billion to $7.4 billion, up from $5.4 billion in the first quarter of 2024. The midpoint of that range is above the analysts consensus of $7.01 billion.
For the full year, AMD expects double-digit growth in its revenue and earnings per share thanks to a strong demand environment, CEO Lisa Su said on the company’s earnings call, according to a transcript provided by AlphaSense.
Ahead of the results, Wall Street analysts suggested AMD could be a key beneficiary as U.S. tech giants ramp up spending on AI, with Bank of America analysts suggesting worries about competition from Chinese firms like AI startup DeepSeek could push Big Tech to spend even more, to the benefit of chipmakers.
Su said recent model breakthroughs like DeepSeek’s and AI infrastructure investments like the $500 billion Stargate joint venture announced last month are “exactly the types of advances we want to see.”
“All of these initiatives require massive amounts of new compute and create unprecedented growth opportunities for AMD across our businesses,” Su said.
AMD shares fell over 8% in extended trading Tuesday following the results. The stock has lost more than a quarter of its value over the past 12 months through Tuesday’s close amid concerns about the chipmaker’s AI revenue and ability to compete with Nvidia’s (NVDA) offerings.
UPDATE—Feb. 4, 2025: This article has been updated since it was first published to include additional information and reflect more recent share prices.