AMD drops as data center revenues disappoint

Advanced Micro Devices erased a short-lived jump in the after-hours session as a slightly light showing on data center revenue outweighed overall positive results.

The chipmaker posted fourth-quarter revenues that came in above expectations and a top-line outlook for the current quarter that was also a little ahead of projections, taking a turn into the red. Shares initially jumped but were recently down 3.7% after-hours. The stock had been up 4.6% for the day before the report, its best day since early October.

Data center revenue was up 69% year on year, a critical driver behind its sales growth. Still, the segment came in a little light compared to analysts’ forecasts.

AMD competes with Nvidia in providing processors in this area, so these results may not instill confidence that the AI pie is growing fast enough for most major chipmakers to continue to grab a very hefty slice, rather than fostering a narrow set of winners.

“2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth,” AMD Chair and CEO Lisa Su said. “Data Center segment annual revenue nearly doubled.”