Core Insights - AMD's stock fell over 13% despite reporting fourth-quarter earnings that exceeded Wall Street estimates, with record revenue of $10.27 billion and adjusted earnings per share of $1.53 [1][1][1] - Analysts noted that a surprising sales boost from China may have masked weaker growth in other areas, raising concerns about AMD's overall AI sales performance [1][1][1] - The market's reaction was unexpected, as some analysts believed the results were strong enough to drive the stock higher, indicating that investors may be looking for more evidence of success from AMD's new products [1][1][1] Financial Performance - AMD reported fourth-quarter revenue of $10.27 billion, surpassing expectations [1][1] - Adjusted earnings per share were $1.53, also better than anticipated [1][1] Market Reaction - Following the earnings report, AMD shares experienced a significant drop, erasing gains for the year, although they remain up approximately 90% over the past 12 months due to strong sales and new partnerships [1][1][1] - Analysts from Morgan Stanley expressed surprise at the stock's decline, suggesting that the results should have been sufficient to boost the stock price [1][1]

Nvidia's H20 AI chip situation is not ideal, but it's significantly better than having no H20 sales. Nvidia (NVDA -0.44%) and fellow graphics processing unit (GPU) maker Advanced Micro Devices, or AMD, have agreed to give the U.S. government 15% of their revenue from sales of their respective artificial intelligence (AI) data center chips designed for the China market in exchange for obtaining export licenses for these chips, according to the Financial Times, which first reported the story on Sunday night. ...