AMD Stock: Chipmaker Guides Below Views For Q1

Chipmaker Advanced Micro Devices (AMD) late Tuesday delivered mixed fourth-quarter results and guided lower than views for the current period. AMD stock fell in extended trading.

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The Santa Clara, Calif.-based company earned an adjusted 77 cents a share on sales of $6.17 billion in the December quarter. Analysts polled by FactSet had expected AMD earnings of 77 cents a share on sales of $6.13 billion. On a year-over-year basis, AMD earnings climbed 12% while sales increased 10%.

For the current quarter, AMD predicted sales of $5.4 billion. However, analysts had been modeling $5.73 billion in sales for the first quarter.

Chief Executive Lisa Su said record quarterly sales of AMD Instinct graphics processors and Epyc server processors drove AMD’s fourth-quarter revenue beat. She also noted higher sales of AMD Ryzen PC processors.

“We finished 2023 strong,” Su said in a news release. “Demand for our high-performance data center product portfolio continues to accelerate, positioning us well to deliver strong annual growth in what is an incredibly exciting time as AI reshapes virtually every part of the computing market.”

AMD Stock Sinks After Report

However, AMD expects sales in its data center segment to be flat sequentially in the first quarter. It sees a strong ramp of its data center graphics processing units offsetting a seasonal decline in server sales.

Further, AMD predicted sequential sales declines in its client, embedded and gaming segments. Also, it sees revenue from semi-custom chips declining “by a significant double-digit percentage.”

In after-hours trading on the stock market today, AMD stock dropped more than 6% to 161.06. During the regular session Tuesday, AMD stock slid 3.2% to close at 172.06.

AMD stock is on the IBD Tech Leaders list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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