Advanced Micro Devices, Inc. AMD shares are soaring after the chip company turned in strong fourth-quarter results. Here's a rundown of the report and a look at what CEO Lisa Su told CNBC following the release.
What Happened: AMD reported fourth-quarter revenue of $5.6 billion, which beat average analyst estimates of $5.5 billion, according to Benzinga Pro. Full-year revenue was up 44% year-over-year.
The company reported quarterly earnings of 69 cents per share, which beat consensus estimates of 67 cents per share.
AMD issued guidance at the low end of analyst expectations. The company said it saw first-quarter revenue in the range of $5 billion to $5.6 billion versus estimates of $5.5 billion.
Related Link: AMD Stock Rallies Following Q4 Beat: Chipmaker Weathers PC Market Weakness With Strong Server Chip Sales
Su Chimes In: AMD was firing on all cylinders last quarter, Su said Wednesday on CNBC's "Squawk On The Street" following the company's quarterly results.
"We saw records in healthcare, industrial, automotive, communications, aerospace and defense, as well [as] very, very strong data center cloud," Su said.
"That was how we finished the year up more than 40%."
Jim Cramer, who interviewed Su, noted that he was excited about the strength of data center until the company warned of increased inventories in the space.
"So should I be worried about the next two quarters, Lisa?" Cramer said.
The AMD CEO highlighted the company's strong data center portfolio in response. Despite expecting some near-term readjustments in inventory from data center providers, AMD saw data center continues to grow in 2023, she said, adding that any short-term readjustments were expected to be offset by strength in other areas.
"We do believe that the first quarter is the bottom for PCs and we believe very much in our product portfolio and the strategy that we've put together," Su said.
Cramer pointed out competitors such as Intel Corp INTC experienced significant declines in data center, while AMD continued to take market share.
"I think this is all about product execution," Su responded. "As we look forward to 2023, we have lots of products that are coming out."
"Sure, we will be affected a bit by the macro like everyone else will, but we think that even in this environment we see a strong path to continue to grow share."
See Also: Why This AMD Analyst Is Bumping Up Price Target For Stock By 19% Following Q4 Results
AMD Price Action: AMD has a 52-week high of $132.96 and a 52-week low of $54.57.
The stock was up 8.79% at $81.75 at the time of writing, according to Benzinga Pro.
Photo: Courtesy of AMD.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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