The fourth quarter proved to be a success for Advanced Micro Devices (AMD) as the demand for artificial intelligence continued to drive sales. The chipmaker, based in Santa Clara, Calif., reported a profit of $667 million, or 41 cents per share, for the quarter-ending on December 30. This represents a significant increase from the $21 million, or 1 cent per share, in the same period the previous year. Analysts surveyed by FactSet had predicted earnings of 25 cents per share.
Upon closer examination, adjusted per-share earnings amounted to 77 cents, aligning with analysts' expectations after adjustments were made for certain one-time items. The company experienced a 10% increase in revenue, reaching $6.17 billion, surpassing the estimated $6.13 billion projected by FactSet analysts.
AMD's data center segment revenue showed a robust 38% growth compared to the previous year due to the success of its graphics computing chips. Similarly, the client segment witnessed an impressive 62% increase.
Looking ahead to the first quarter, AMD predicts revenue of approximately $5.4 billion, with a potential deviation of $300 million. However, analysts surveyed by FactSet anticipate revenue slightly higher at $5.73 billion.
Sequentially, AMD does not foresee any growth in the data center segment revenue, while clients, embedded systems, and gaming sales are expected to decline.
Overall, Advanced Micro Devices has proven its resilience and adaptability in an increasingly competitive market. With consistent innovation and a strong focus on meeting customer demands, AMD is setting itself up for continued success.
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