AMD CEO Lisa Su.
Courtesy: AMD
Superior Micro Gadgets reported fourth-quarter outcomes on Tuesday that beat Wall Avenue expectations for gross sales and earnings, however the inventory fell about 6% in prolonged buying and selling as the corporate missed estimates in its key information middle phase.
Here is how the chipmaker did, versus LSEG consensus estimates for the quarter ended Dec. 28:
- Earnings per share: $1.09, adjusted, versus $1.08 anticipated
- Income: $7.66 billion versus $7.53 billion
AMD mentioned it expects $7.1 billion in gross sales within the first quarter, plus or minus $300 million. It projected its gross margin to be about 54%. Analysts anticipated AMD to information for income of $7 billion.
AMD reported $482 million in web revenue, or 29 cents per share, for the fourth quarter, down from $667 million, or 41 cents per share within the year-ago interval.The corporate’s adjusted earnings per share excluded objects resembling acquisition prices, stock loss at contract producers, and restructuring expenses.
Su advised traders on an earnings name that AMD believes it would report “sturdy double-digit share income and EPS progress” in 2025.
The corporate’s most vital unit is its enterprise promoting chips for information facilities, which has been rising in latest quarters, because of demand for its graphics processing models for synthetic intelligence.
AMD reported $3.86 billion in information middle gross sales, which was up 69% on a year-over-year foundation. The corporate mentioned the rise was as a consequence of gross sales each in its Intuition GPUs and its EPYC CPUs, which compete with Intel’s processors.
Nevertheless, analysts polled by FactSet had been predicting $4.14 billion in information middle gross sales through the quarter.
For the complete 12 months, AMD’s information middle division income elevated 94% to $12.6 billion. AMD mentioned that $5 billion of these gross sales had been from its Intuition GPUs for AI.
Whereas AMD is way behind market chief Nvidia, it is launched aggressive information middle GPUs lately such because the MI300X, that some huge infrastructure consumers, together with Meta and Amazon, have embraced.
“We consider this locations AMD on a steep long-term progress trajectory, led by the speedy scaling of our information middle AI franchise from greater than $5 billion of income in 2024 to tens of billions of {dollars} of annual income over the approaching years,” Su mentioned on the earnings name with analysts.
AMD categorizes its chips for PCs, laptops, and different particular person computer systems as consumer income, which elevated 58% on an annual foundation to $2.3 billion. AMD mentioned each its chips for desktops in addition to cellular computer systems resembling laptops are seeing sturdy demand.
AMD can be the second-largest producer of GPUs for gaming, behind Nvidia. Income within the phase declined 59% to $563 million. The corporate’s different small division, embedded chips, reported $923 million in gross sales, down 13% year-over-year.
