AMD stock plummets despite Q4 earnings beat

Core Viewpoint - Advanced Micro Devices (AMD) stock dropped over 16% despite better-than-expected Q4 earnings and a positive Q1 outlook, indicating investor disappointment with the results and projections [1] Financial Performance - AMD reported earnings per share (EPS) of $1.53 on revenue of $10.3 billion, surpassing Wall Street's expectations of EPS of $1.32 on revenue of $9.6 billion [3] - Year-over-year revenue growth was noted, with Q4 revenue increasing from $7.7 billion in the same quarter last year [3] - Q1 revenue guidance is projected between $9.5 billion and $10.1 billion, exceeding the Street's estimate of $9.4 billion, although some forecasts anticipated over $10 billion [3] Business Segments - Data center revenue for the quarter reached $5.4 billion, exceeding expectations of $4.97 billion [4] - Client business revenue in the PC segment was $3.1 billion, above the anticipated $2.9 billion, while gaming revenue was $843 million, slightly below the expected $855 million [5] Market Context - AMD's stock had increased over 112% in the 12 months leading up to the earnings report, reflecting investor optimism about growth potential and market share gains against Nvidia [2] - The company is facing challenges similar to Intel, including a global memory shortage that may impact PC and gaming demand [7] Product Developments - AMD showcased new products, including the Helios rack-scale server, which aims to compete directly with Nvidia's offerings [8] - The upcoming MI500 series of GPUs is claimed to provide up to a 1,000x increase in AI performance compared to older models, with a significant market opportunity projected in the AI data center sector [9]