AMD has released its fourth-quarter earnings and the results have beaten Wall Street’s expectations for sales and profit. Despite the positive results, the company has guided analysts to a 10% decline in year-over-year sales in the current quarter. Despite this, the stock rose over 2% in extended trading. In the quarter ending December, AMD’s EPS was $0.69, adjusted, versus $0.67 per share expected, and its revenue was $5.6 billion, versus $5.5 billion expected.
One of the key reasons for the company’s success is the strong growth in its embedded and data center businesses. In the data center segment, sales rose 42% year-over-year to $1.7 billion, and in the embedded segment, growth was 1,868% due to sales from the purchase of Xilinx. However, the company’s gaming segment and client group, which includes sales from PC processors, were both down.
While the demand environment is mixed, AMD CEO Lisa Su is confident in the company’s ability to gain market share in 2023 and deliver long-term growth based on its differentiated product portfolio. Despite slow sales in its PC chips and graphics processors, AMD expects its data center and embedded sales to grow in the current quarter.
