Wed Feb 05 07:30:00 IST 2025: ## AMD Beats Earnings Expectations But Stock Dips on Data Center Miss
**Santa Clara, CA –** Advanced Micro Devices (AMD) reported strong fourth-quarter earnings on Tuesday, exceeding Wall Street’s sales and earnings projections. However, the company’s stock fell approximately 6% in after-hours trading due to a shortfall in its crucial data center segment.
AMD announced a net income of $482 million, or 29 cents per share, for the quarter ending December 28th. While this represents a decrease compared to the same period last year, it still surpassed analyst expectations. The company also projected first-quarter sales of $7.1 billion, slightly higher than analysts’ forecasts.
Despite overall success, the data center segment, AMD’s most significant revenue driver, fell short of predictions. While sales increased 69% year-over-year to $3.86 billion, this figure trailed analyst expectations of $4.14 billion. Although the company attributed the growth to strong sales of its Instinct GPUs and EPYC CPUs, the miss dampened investor enthusiasm.
CEO Lisa Su expressed confidence in the company’s future, projecting strong double-digit revenue and earnings per share growth in 2025, fueled by the expanding data center AI market. She highlighted the significant growth potential of the AI segment, projecting revenue to grow from over $5 billion in 2024 to tens of billions in the coming years. The company’s client revenue (PCs and laptops) also showed substantial growth, increasing 58% year-over-year to $2.3 billion. However, the gaming segment experienced a significant 59% decline in revenue.
Despite the data center miss, AMD’s overall performance reflects continued strength in key areas, highlighting the company’s ongoing competitiveness in the chip market. The long-term outlook remains positive, driven by the expanding AI market and the strong performance of its products in other segments.
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