Advanced Micro Devices Inc (NASDAQ:AMD, ETR:AMD) reported fourth-quarter financial results that exceeded market expectations, but its stock see-sawed in after-hours trading.
The company posted adjusted earnings per share of $1.09, in line with analyst estimates, while revenue came in at $7.66 billion, surpassing the projected $7.54 billion.
However, its adjusted operating margin of 26% fell slightly short of the anticipated 26.8%.
For the first quarter of 2025, AMD expects revenue between $6.8 billion and $7.4 billion, closely aligning with the consensus estimate of $7.04 billion. The company also forecasts a gross margin of approximately 54%.
AMD’s segment performance was mixed. The data center business generated $3.9 billion in revenue, missing the expected $4.15 billion but still growing 69% year-over-year. The client segment outperformed expectations with $2.3 billion in revenue, compared to estimates of $1.94 billion, marking a 58% increase from the prior year.
The gaming division brought in $563 million, beating projections of $489 million, although it saw a sharp 59% decline from a year earlier.
After initially gaining 4% on the revenue beat, AMD shares wound up in the red a few minutes later, down around 3% on a weaker guidance.
AMD CEO Lisa Su highlighted the company’s strong momentum. “2024 was a transformative year for AMD, driven by record annual revenue and AI leadership. Our Data Center segment nearly doubled in size, with over $5 billion in Instinct accelerator sales.
“We are well-positioned for continued growth in 2025.”