Advanced Micro Devices late Tuesday beat Wall Street's targets for the fourth quarter and guided higher than views for the current period. But AMD stock fell in extended trading.
The fabless chipmaker earned an adjusted $1.09 a share on sales of $7.66 billion in the December-ended quarter. Analysts polled by FactSet had expected AMD earnings of $1.08 a share on sales of $7.53 billion. On a year-over-year basis, AMD earnings climbed 42% while revenue increased 24%.
For the current quarter, the Santa Clara, Calif.-based company predicted sales of $7.1 billion. Wall Street was modeling $7 billion.
In after-hours trading on the stock market today, AMD stock initially rose but then retreated. In recent trades, it was down more than 5% to 112.50. During the regular session Tuesday, AMD stock rose 4.6% to close at 119.50.
"2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth," Chief Executive Lisa Su said in a news release. "Data Center segment annual revenue nearly doubled as Epyc processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue."
She added, "Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing."
AMD competes with Intel in PC and server processors and Nvidia in AI accelerators and graphics chips.
Last week, Intel edged above diminished expectations for the fourth quarter. Intel earned an adjusted 13 cents a share, down 76% year over year, on sales of $14.3 billion, down 7%. It was Intel's third straight quarter of declining sales and earnings. Also, its sales guidance for the current quarter was below views.
AMD stock ranks No. 16 out of 39 stocks in IBD's fabless semiconductor industry group, according to IBD Stock Checkup. It has a middling IBD Composite Rating of 63 out of 99.
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