AMD shows mixed results in Q4 2024 earnings report
Advanced Micro Devices (AMD) has released its Q4 2024 earnings report, revealing a mixed bag of results that have sparked interest and discussions among investors and analysts.
While the company managed to surpass expectations in certain areas, it fell short in others, notably in data centre revenue.
Key highlights
- Earnings per share (EPS): AMD reported an adjusted EPS of $1.09, slightly above the expected $1.08. This indicates a stable performance in terms of profitability, showcasing the company’s ability to manage costs effectively.
- Revenue: The company posted a revenue of $7.66 billion, surpassing analysts’ estimates of $7.53 billion. This positive result highlights AMD’s continued growth and market presence, particularly in its core segments.
- Data centre sales: Despite the overall positive revenue, AMD’s data centre sales fell short of expectations. Sales in this segment nearly doubled to $3.86 billion, reflecting a 69% increase year-over-year. However, this figure was below the anticipated $4.14 billion, signaling challenges in meeting the high demand and competition in the data center market.
- Income: AMD reported a net income of $482 million, or 29 cents per share, down from $667 million, or 41 cents per share, in the year-ago period. This decline in net income suggests that the company faced increased expenses or other financial challenges during the quarter.
First quarter guidance
Looking ahead, AMD has provided guidance for the first quarter of 2025. The company expects Q1 sales to be around $7.1 billion, with a gross margin of approximately 54%. This forecast indicates cautious optimism, with AMD aiming to navigate the complexities of the semiconductor industry and maintain steady growth.
CEO’s statement
AMD’s CEO, Lisa Su, reportedly expressed confidence in the company’s future, particularly in the data centre AI market.
She highlighted the significant opportunities and potential for growth in this area, predicting strong double-digit revenue and EPS growth for 2025.
Her statement underscores AMD’s strategic focus on innovation and expanding its market share in high-growth segments.
Future
AMD’s Q4 2024 earnings report presents a nuanced picture of the company’s performance. While it has achieved notable successes in certain areas, challenges remain, particularly in meeting data centre revenue expectations.
As AMD continues to navigate the competitive landscape of the semiconductor industry, its future strategies and market positioning will be closely watched by investors and analysts alike.