AMD’s Data Center Revenue Hits Record High But Misses Expectations

Advanced Micro Devices (AMD) posted fourth-quarter revenue and adjusted earnings that beat expectations, but data center sales came up short.

The chipmaker’s revenue grew 24% year-over-year to a record $7.66 billion, above the analyst consensus compiled by Visible Alpha. Earnings came in at $482 million, or 29 cents per share, down from $667 million, or 41 cents per share, a year earlier, falling short of expectations. However, on an adjusted basis, AMD’s earnings of $1.78 billion, or $1.09 per share, beat expectations.

The revenue gains came as AMD’s data center sales climbed 69% to a record $3.86 billion driven by demand for the company’s artificial intelligence chips, but still missed the $4.12 billion called for by analysts.

Looking ahead, AMD said it expects first-quarter revenue of $6.8 billion to $7.4 billion, up from $5.4 billion in the first quarter of 2024. The midpoint of that range is above the analysts consensus of $7.01 billion. 

Ahead of the results, Wall Street analysts suggested AMD could be a key beneficiary as U.S. tech giants ramp up spending on AI, with Bank of America analysts suggesting worries about competition from Chinese firms like AI startup DeepSeek could push Big Tech to spend even more, to the benefit of chipmakers.

AMD shares fell about 5% in extended trading Tuesday following the release. The stock has lost over a quarter of its value over the past 12 months through Tuesday’s close amid concerns about the chipmaker’s outlook and ability to compete with Nvidia’s (NVDA) offerings.