On Tuesday, Advanced Micro Devices, Inc. (AMD), reported 4Q earnings with better-than-expected results on both the top and bottom lines.
AMD’s quarterly report came the same day as President Donald Trump imposed a 10% tariff on imports from China, and over a week after China’s DeepSeek rattled the technology sector with its cost-efficient AI models.
Despite impressive performance, AMD’s shares plunged more than 3.5% in after-hours trading.
AMD is fighting to take market share in the AI sector from its long time rival Nvidia, which dominates sales of advanced AI chips. In the meantime, AMD is also facing a decline in PC sales, even as the industry is pushing consumers and enterprises to adopt AI PCs, a computer with specialized processors to power AI.
In Q4, AMD reported earnings per share (EPS) of $1.09 with $7.56 billion in revenue, inline with Wall Street’s forecast. However, the company’s data center business, which contributes the majority of AMD’s revenue, has yielded $3.9 billion, slightly missing the $4.09 billion expectation.
AMD’s client department, which includes PC chips, earned $2.3 billion in the quarter, surpassing analysts’ forecast of $1.98 billion. The company’s gaming segment also gained $563 million, beating Wall Street’s anticipated $487 million.
AMD expects 1Q25 revenue at around $6.8-7.4 billion, while Wall Street forecasts $7.0 billion.
Meanwhile, AMD’s shares have struggled throughout the last year, with stock plummeting 33%, while Nvidia saw its share price soared by 80% and its rival in CPU sector, Intel, saw its share nosedived 54% during the same period.
