AMD Reports Q4 Revenue Growth amid High Expectations
Advanced Micro Devices (NASDAQ: AMD) reported a 34% increase in Q4 revenue, reaching $10.27 billion, driven by a surge in data center and gaming segments. The company attributed $390 million in sales of graphics processing units (GPUs) to China, but projected minimal future sales from this market due to its “dynamic” status.
Data center revenue climbed 39% year over year to $5.4 billion, bolstered by strong CPU and GPU demand. Gaming revenue surged 50% to $843 million, while the client segment rose 37% to $3.9 billion. AMD anticipates Q1 revenue to grow by 32% to approximately $9.8 billion.
Despite strong performance, AMD’s stock fell as investors had higher expectations following a year of substantial gains. The company trades at a forward P/E ratio of 32, but a low PEG ratio of 0.2, suggesting potential undervaluation amidst ongoing AI infrastructure investments.
