Lisa Su, president and CEO of AMD, talks about the AMD EPYC processor during a keynote address at the 2019 CES in Las Vegas, Nevada, U.S., January 9, 2019.
Steve Marcus | Reuters
AMD reported fourth-quarter earnings on Tuesday that were in line with analyst expectations, while the company’s revenue beat estimates, but AMD offered a first-quarter forecast that fell short of expectations.
AMD stock slid more than 6% in extended trading, even after the company gave a positive update on how quickly its new AI chips are selling.
Here’s how the company did versus LESG (formerly Refinitiv) consensus estimates for the quarter ended in December:
- EPS: $0.77 per share, adjusted, versus $0.77 per share expected
- Revenue: $6.17 billion, versus $6.12 billion expected
For the first quarter, AMD said it expects about $5.4 billion in sales, plus or minus $300 million, while analysts were looking for revenue of $5.73 billion. AMD added that it expected some of its major businesses, including PC chips, to decline sequentially during the quarter. It said that its data center revenue would be flat as server CPU declines would be offset by AI GPU sales.
“For 2024, we expect the demand environment to remain mixed,” AMD CEO Lisa Su said on a call with analysts.
Net income in the fourth quarter was $667 million, or $0.41 per share, versus $21 million, or $0.01 per share a year ago.
AMD makes graphics processing units, or GPUs, which are needed to train and deploy generative artificial intelligence models. While that market is currently dominated by Nvidia, AMD has said that its new AI chips introduced last year will challenge Nvidia’s H100 GPUs for some applications, and investors are looking for significant growth in the company’s data center segment over the next few years.
AMD gave a positive update on its AI chips sales. In October, AMD said it expected $2 billion in server GPU sales in 2024. On Tuesday, it said it now expects $3.5 billion in data center GPU sales under its “Instinct”…
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