From Nasdaq:

Advanced Micro Devices reported fourth-quarter earnings with a 10% year-over-year revenue growth to $6.17 billion. Data center segment revenue soared 38%. However, gaming and embedded hardware sales fell by 17% and 24%, respectively. The company also expects a sharp decline in first-quarter sales to $5.4 billion, less than expected by analysts.

CEO Lisa Su projects that data center GPUs will add $3.5 billion to AMD’s top line by 2024. The bull thesis relies on capturing 5% of the AI chip market, projected to grow to $400 billion by 2027. To grow market share, AMD must make its chips competitive with Nvidia’s flagship H100, which each costs $40,000.

Despite a high valuation with a forward P/E of 44 compared to Nvidia’s 30, AMD has a bullish outlook. However, this will be a make-or-break period for the company. The Stock Advisor service rated AMD as a buy but urged cautious investors to wait for more quarters of data before investing.



Read more: Is AMD Stock Still a Buy in February?