AMD’s data center income hits record high but misses expectations

Advanced micro units (AMD) placed revenue in the fourth quarter and adjusted earnings that broke expectations, but the sale of data center came up briefly.

Chipmaker’s revenue rose 24% the previous year to a record $ 7.66 billion, over the analysts’ consensus compiled by visible alpha. Earnings came at $ 482 million, or 29 cents per year. Share, down from $ 667 million, or 41 cents per Share, a year earlier, lacking expectations. On an adjusted basis, AMD’s earnings beat $ 1.78 billion or $ 1.09 per year. Stock expectations.

The revenue gains came when AMD’s sale of data centers rose 69% to record $ 3.86 billion driven by demand for the company’s artificial intelligence chips, but still missed the $ 4.12 billion required by analysts.

Looking ahead, AMD said it expects revenue in the first quarter of $ 6.8 billion to $ 7.4 billion, up from $ 5.4 billion in the first quarter of 2024. The centerpiece of this interval is over the analysts consensus of $ 7.01 billion.

Prior to the results, Wall Street analysts suggested that AMD could be an important recipient as US tech giants increase the cost of AI, with Bank of America Analysts that suggest concerns about competition from Chinese companies like AI Startup Deepseek could push Big Tech To use even more, in favor of chipmakers.

AMD shares fell approx. 5% in extended trade on Tuesday after release. The stock has lost over a quarter of its value over the past 12 months through Tuesday’s close in the midst of the concerns about the chipmaker’s vision and ability to compete with Nvidia’s (NVDA) offering.