From Financial Modeling Prep: 2025-02-05 08:46:00

Advanced Micro Devices (NASDAQ:AMD) had a strong Q4, surpassing earnings and revenue estimates. Despite this, shares fell over 9% in premarket trading due to concerns about a slowdown in the data center business. Q4 saw record revenue of $7.7 billion, with adjusted EPS of $1.09, slightly above projections of $1.08.

The Data Center division was a standout, with revenue almost doubling thanks to demand for EPYC server chips. Overall, AMD had a successful 2024, with record full-year revenue of $25.8 billion and a non-GAAP gross margin of 53%. However, Q1 2025 revenue projections of $6.8 billion to $7.4 billion have investors cautious.

Despite the strong financial performance, concerns about a potential data center sales slowdown are impacting investor sentiment. AMD’s leadership remains optimistic about long-term growth in high-performance computing and AI acceleration. The competitive landscape and demand trends will be closely monitored in the coming quarters to gauge AMD’s sustainability.



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