AMD to report Q4 earnings amid AI spending concerns

Core Viewpoint - AMD is set to report its fourth quarter earnings, which will provide insights into the health of the AI market, with stock rising 2% in premarket trading ahead of the report [1] Group 1: Earnings Expectations - AMD is expected to report Q4 earnings per share (EPS) of $1.32 on revenue of $9.6 billion, an increase from $1.09 EPS and $7.7 billion revenue in the same quarter last year [3] - Wall Street anticipates data center revenue of $4.97 billion, up 29% year-over-year from $3.86 billion reported in Q4 2024 [5] - The client business revenue is projected to reach $2.9 billion, while the gaming business is expected to see revenue of $855 million, a 52% year-over-year increase from $563 million [5][6] Group 2: Competitive Landscape - AMD is facing competition from Nvidia, particularly with its new Helios rack-scale server designed to compete with Nvidia's NVL72 offering [6][7] - The company is also contending with a global memory shortage, which may impact sales and pricing in its consumer chip business [3] - Increased competition is emerging from major customers like Google, Amazon, and Microsoft, who are developing their own chips for data centers [8] Group 3: AI Market Outlook - CEO Lisa Su believes the AI data center market could be worth around $1 trillion by 2030, indicating strong growth potential for AMD [8]