Key Points
Advanced Micro Devices (NASDAQ: AMD) reported Q4 2022 earnings on December 31, revealing revenue of $10.3 billion, surpassing expectations of $9.7 billion, primarily due to increased shipments to China. Despite this growth, AMD’s guidance for Q1 2023 indicates a slowdown, projecting a growth rate of 32%, down from 34% in Q4.
Year-to-date, AMD shares have declined by 7%, following a significant 77% increase in 2022. Currently, the stock trades at over 75 times its trailing earnings and a forward multiple of 29, compared to the S&P 500 average of 21, indicating a high valuation that may pose risks for investors considering a purchase.
