AMD and Alphabet Fall After Q4 Results: Key Earnings Takeaways

AMD (NASDAQ:AMD) and Alphabet (NASDAQ:GOOGL) both reported their Q4 2024 earnings after the market close on Tuesday, with mixed results that sent their stocks tumbling in after-hours trading. Here are the key takeaways from both companies' earnings reports.

AMD's Q4 2024 Earnings:

* Revenue: $7.7 billion, up 24% year-over-year (YoY)
* Gross margin: 51%, up 4 percentage points YoY
* Operating income: $871 million, up 155% YoY
* Operating margin: 11%, up 5 percentage points YoY
* Net income: $482 million, down 28% YoY
* Diluted earnings per share (EPS): $0.29, down 29% YoY
* Non-GAAP revenue: $7.658 billion, up 24% YoY
* Non-GAAP gross margin: 54%, up 3 percentage points YoY
* Non-GAAP operating income: $2.026 billion, up 43% YoY
* Non-GAAP net income: $1.777 billion, up 42% YoY
* Non-GAAP EPS: $1.09, up 42% YoY

AMD's Q4 2024 earnings were driven by strong growth in its Data Center segment, which saw revenue increase 69% YoY to $3.9 billion. The company's Client segment also performed well, with revenue up 58% YoY to $2.3 billion. However, the Gaming segment saw a significant decline of 59% YoY, with revenue dropping to $563 million.



Alphabet's Q4 2024 Earnings:

* Total revenue: $96.5 billion, up 12% YoY
* Google Services revenue: $84.1 billion, up 10% YoY
* Google Cloud revenue: $12 billion, up 30% YoY
* Earnings per share (EPS): $2.15, beating estimates of $2.12
* Net income: $18.3 billion, up 11% YoY

Alphabet's Q4 2024 earnings were driven by strong growth in its Google Cloud segment, which saw revenue increase 30% YoY to $12 billion. The company's Google Services segment also performed well, with revenue up 10% YoY to $84.1 billion. However, Alphabet's ad revenue growth slowed down, with YouTube ad sales up just 1% YoY and advertising network revenue down 1% YoY.



In conclusion, both AMD and Alphabet reported mixed Q4 2024 earnings, with AMD's Data Center and Client segments driving growth, while Alphabet's Google Cloud segment performed well. However, both companies' stocks fell in after-hours trading due to slower-than-expected growth in certain segments and concerns about the broader economic outlook. Investors will be closely watching both companies' future earnings reports to gauge their ability to maintain growth and navigate the current market conditions.