AMD falls 7% on soft revenue forecast; Wells Fargo sees a buying opportunity By

© REUTERS AMD offers better-than-expected sales guidance on ‘accelerating’ demand for high-end chips

Advanced Micro Devices, Inc. (NASDAQ:) reported better-than-expected financial results for its fourth quarter.

The chipmaker posted an earnings per share (EPS) of $0.77, exactly matching the analysts’ estimates. In terms of revenue, AMD reported a strong quarter with $6.2 billion in revenue, surpassing the consensus estimate of $6.13 billion.

The stock was up 1.5% in after-hours trade.

Looking ahead, AMD expects its revenue to be between $5.1 billion and $5.7 billion. This forecast fell below the consensus estimate of $5.73 billion.

“We finished 2023 strong, with sequential and year-over-year revenue and earnings growth driven by record quarterly AMD Instinct GPU and EPYC CPU sales and higher AMD Ryzen processor sales,” said AMD Chair and CEO Dr. Lisa Su.

“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 re-shapes virtually every part of the computing market.”

Data Center segment revenue was $2.3 billion, up 38% year-over-year and 43% sequentially “driven by strong growth in AMD Instinct GPUs and 4th Gen AMD EPYC CPUs.”