AMD Earnings: Data Center and PC Shine

Key Metrics - AMD reported Q4 2023 revenue of $6.17 billion, a 24% increase year-over-year, beating expectations [1] - Adjusted earnings per share for Q4 2023 were $0.77, with a 42% increase to $1.09 in Q4 2024, meeting expectations [1] - Data center revenue surged 69% to $2.28 billion in Q4 2023 [1][2] - Client revenue rose 58% to $1.46 billion in Q4 2023 [1][3] Data Center and PC Growth - The data center segment, including EPYC server CPUs and Instinct AI accelerators, was a key growth driver, with revenue reaching $3.9 billion in Q4 2023 [2] - AMD's Instinct accelerators generated over $5 billion in sales for the full year [2] - The client segment also performed well, benefiting from Intel's struggles, with revenue increasing to $2.3 billion [3] Challenges in Other Segments - The gaming segment saw a significant decline, with revenue dropping 59% year-over-year to $563 million, primarily due to a slump in semi-custom chip revenue [4] - The embedded segment faced challenges with excess client inventories, resulting in a 13% revenue decline to $923 million [5] Market Reaction - Following the earnings report, AMD's share prices fell nearly 4% in after-hours trading, despite meeting adjusted earnings expectations and beating revenue [6] - AMD's stock has been weak over the past year, down 33% prior to the earnings report [6] Future Outlook - AMD anticipates Q1 2025 revenue between $6.8 billion and $7.4 billion, indicating a year-over-year growth of 30% at the midpoint [7] - Investors are keen on AMD's forecast for AI accelerator sales, especially as Nvidia continues to dominate the market [8]