AMD Beats Q4 Expectations, Provides Strong Q1 Guidance Amid Tariffs and AI Competition
Quarterly Results:
* Earnings per share (EPS): $1.09 (expected: $1.09)
* Revenue: $7.56 billion (expected: $7.5 billion)
Business Segments:
* Data center: $3.9 billion (below expectations)
* Client (PC chips): $2.3 billion (above expectations)
* Gaming: $563 million (above expectations)
Guidance:
* Q1 revenue: $6.8-$7.4 billion (expected: $7.0 billion)
Market Dynamics:
* AMD competes with Nvidia (NVDA) in the AI chip market.
* Company faces declining PC sales despite industry's push for AI-powered devices.
Tariffs:
* Trump's 10% tariff on Chinese goods may impact the broader electronics market, including servers and PCs.
* Tariffs on semiconductors could drive up consumer prices.
Stock Performance:
* AMD shares fell over 3.5% in after-hours trading despite earnings beat.
* AMD shares have declined 33% in the past year, trailing NVDA's 80% gain.