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AMD Earnings: Q4 Showcases Strength in Data Center and Client Segments with a side of Soft Guidance

AInvestTuesday, Jan 30, 2024 5:56 pm ET
1min read

In its latest earnings report, Advanced Micro Devices Inc. (AMD) demonstrated resilience, delivering Q4 earnings in line with expectations at $0.77 per share and exceeding revenue estimates at $6.17 billion, marking a 10.2% YoY increase. The non-GAAP gross margins remained robust at 51%.

A standout performer was the Data Center segment, witnessing a remarkable 38% YoY revenue increase driven by strong sales of AMD Instinct GPUs and 4th Gen AMD EPYC CPUs. The Client segment also thrived with a substantial 62% YoY revenue boost, fueled by higher AMD Ryzen 7000 Series CPU sales.

Conversely, the Gaming segment reported a 17% YoY decrease in revenues due to a reduction in semi-custom revenue, partially offset by increased AMD Radeon GPU sales. The Embedded segment faced a 24% YoY revenue decline as customers reduced inventory levels.

For the full year, AMD's revenue reached $22.7 billion, reflecting a 4% decrease compared to the previous year. Q4 net income surged to $667 million from $21 million YoY, while full-year net income decreased by 35% to $854 million. GAAP diluted EPS for Q4 rose to $0.41 from $0.01 in Q4 2022, and non-GAAP EPS was $0.77. For the full year, GAAP EPS was $0.53, and non-GAAP EPS was $2.65.

In Q1 guidance, AMD projects revenues between $5.1-5.7 billion, slightly below analysts' estimates. The Data Center segment's revenue is expected to remain flat, while the Client, Embedded, and Gaming segments anticipate sequential declines. Despite this, AMD's competitive edge in the data center and AI markets positions it strategically for future growth.

AMD shares are down about 6% off the report in after hours action.


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