What's Going On With AMD Stock Wednesday?

Advanced Micro Devices Inc AMD shares are falling Wednesday morning on the heels of the company’s fourth-quarter financial results. Multiple analysts also lowered price targets following the print.

• Q4 Revenue: $7.66 billion, versus estimates of $7.53 billion

• Q4 Adjusted EPS: $1.09, versus estimates of $1.08

Total revenue was up 12% year-over-year, led by Data Center revenue of $3.9 billion, which was up 69% year-over-year. The Data Center results came in below analyst expectations of $4.14 billion, per CNBC. The Data Center number appears to be the main thing weighing on shares Wednesday as investors continue to focus on AI growth.

Client segment revenue totaled $2.3 billion, up 58% year-over-year. Gaming revenue fell 59% year-over-year to $563 million and Embedded revenue declined 13% year-over-year to $923 million. 

"2024 was a transformative year for AMD as we delivered record annual revenue and strong earnings growth," said Lisa Su, chair and CEO of AMD. "Data Center segment annual revenue nearly doubled as EPYC processor adoption accelerated and we delivered more than $5 billion of AMD Instinct accelerator revenue."

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Q1 Outlook: AMD anticipates first-quarter revenue of approximately $7.1 billion, plus or minus $300 million. The company’s revenue guidance represents year-over-year growth of approximately 30% at the midpoint.

"Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing," Su said.

Su noted on the conference call that the company anticipates “strong double-digit percentage revenue and EPS growth" this year.

Following the company’s quarterly results, Keybanc analyst John Vinh maintained AMD with an Overweight rating and lowered the price target from $150 to $140. BofA Securities analyst Vivek Arya maintained a Neutral rating and lowered the price target from $155 to $135. Benchmark analyst Cody Acree maintained a Buy and lowered the price target from $200 to $170.

AMD Price Action: AMD shares were down 9.9% at $107.67 at the time of publication Wednesday, according to Benzinga Pro.

Photo: courtesy of AMD.