Advanced Micro Devices (AMD) has reported its earnings for the fourth quarter of fiscal year 2024, revealing a mixed performance that fell short of market expectations. The company’s data center segment, which is crucial to its growth strategy, disclosed revenue of $1.2 billion, which was below analysts’ forecasts and represented a 10% decrease year-over-year. The overall revenue of AMD stood at $5.6 billion, which narrowly missed the consensus estimate of $5.8 billion. CEO Lisa Su expressed concern, saying, ‘While our diversified portfolio has strengthened, the demand in the data center market has not been as robust as we anticipated.’ The net income for the latest quarter was reported at $850 million, or $0.68 per share, compared to $900 million, or $0.75 per share, in Q4 of 2023. Furthermore, AMD forecasted a continuation of these challenges into the first half of 2025, expecting data center revenues to remain volatile due to ongoing global supply chain issues and competition from rivals such as NVIDIA and Intel. Despite the reported struggles, AMD remains optimistic about its long-term potential, particularly in areas including high-performance computing and machine learning, with plans to invest in R&D to capture market share moving forward. AMD’s shares saw a decline of 4% in after-hours trading following the earnings announcement.
AMD Reports Q4 2024 Earnings with Data Center Sales Underwhelming
