AMD’s Information Middle Income Hits Document Excessive However Misses Expectations

Superior Micro Units (AMD) posted fourth-quarter income and adjusted earnings that beat expectations, however knowledge middle gross sales got here up brief.

The chipmaker’s income grew 24% year-over-year to a report $7.66 billion, above the analyst consensus compiled by Seen Alpha. Earnings got here in at $482 million, or 29 cents per share, down from $667 million, or 41 cents per share, a 12 months earlier, falling in need of expectations. Nevertheless, on an adjusted foundation, AMD’s earnings of $1.78 billion, or $1.09 per share, beat expectations.

The income good points got here as AMD’s knowledge middle gross sales climbed 69% to a report $3.86 billion pushed by demand for the corporate’s synthetic intelligence chips, however nonetheless missed the $4.12 billion known as for by analysts.

AMD Forecasts Double-Digit Development This Yr on Sturdy Demand

Trying forward, AMD mentioned it anticipates first-quarter income of $6.8 billion to $7.4 billion, up from $5.4 billion within the first quarter of 2024. The midpoint of that vary is above the analysts consensus of $7.01 billion. 

For the complete 12 months, AMD expects double-digit progress in its income and earnings per share due to a robust demand setting, CEO Lisa Su mentioned on the corporate’s earnings name, in accordance with a transcript offered by AlphaSense.

Forward of the outcomes, Wall Road analysts advised AMD might be a key beneficiary as U.S. tech giants ramp up spending on AI, with Financial institution of America analysts suggesting worries about competitors from Chinese language corporations like AI startup DeepSeek might push Huge Tech to spend much more, to the advantage of chipmakers.

Su mentioned latest mannequin breakthroughs like DeepSeek’s and AI infrastructure investments just like the $500 billion Stargate three way partnership introduced final month are “precisely the sorts of advances we need to see.”

“All of those initiatives require large quantities of latest compute and create unprecedented progress alternatives for AMD throughout our companies,” Su mentioned.

AMD shares fell over 8% in prolonged buying and selling Tuesday following the outcomes. The inventory has misplaced greater than 1 / 4 of its worth over the previous 12 months by way of Tuesday’s shut amid issues in regards to the chipmaker’s AI income and talent to compete with Nvidia’s (NVDA) choices.

UPDATE—Feb. 4, 2025: This text has been up to date because it was first printed to incorporate further info and replicate newer share costs.