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AMD stock slides despite Q4 earnings beat, strong Q1 forecast

Daniel Howley
Daniel Howley · Technology Editor
Updated February 5, 2025 2 min read

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AMD (AMD) reported its fourth quarter earnings after the bell on Tuesday, beating expectations on the top and bottom lines and providing a better-than-anticipated Q1 forecast.

The chipmaker's announcement came the same day President Donald Trump enacted a 10% tariff on goods made in China and a little over a week after China-based DeepSeek rocked the tech world with its low-cost AI models.

Despite the earnings beat and stronger guidance, the chipmaker's stock fell almost 9% before the bell on Wednesday. AMD's growth forecast for its data center business disappointed analysts looking for signs of momentum in AI chips as it goes up against Nvidia (NVDA).

NasdaqGS - Nasdaq Real Time Price
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USD
Advanced Micro Devices, Inc. (AMD)

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175.28
-1.50
(-0.85%)
As of 3:28:00 PM EDT. Market Open.
Date 8/5 9:20 AM
Close 177.49
Open 177.98
High 178.05
Low 177.41
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AMD is battling to take market share in the artificial intelligence space from Nvidia, which dominates sales of high-powered AI chips. At the same time, the company is contending with a continued slowdown in PC sales, even as the industry works to push consumers and enterprises toward AI PCs — computers that feature specialized processors designed to power AI tasks.

For the quarter, AMD reported earnings per share (EPS) of $1.09 on revenue of $7.56 billion. Wall Street was expecting EPS of $1.09 and revenue of $7.5 billion, according to Bloomberg consensus estimates. The company’s data center business, its largest segment by revenue, brought in $3.9 billion, just shy of expectations of $4.09 billion for the quarter.

AMD’s client segment, which includes chips for PCs, generated $2.3 billion for the quarter. Analysts were anticipating revenue of $1.98 billion. The company also saw Gaming revenue of $563 million. Wall Street was looking for $487 million.

For the current quarter, AMD anticipates revenue between $6.8 billion and $7.4 billion. Wall Street had expected $7.0 billion.

AMD shares have struggled throughout the last 12 months, falling 33% compared to rival Nvidia, which has jumped 80%. Still, that’s better than archnemesis Intel (INTC), which has seen shares fall 54% in the same time period.

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NVIDIA Corporation (NVDA)

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178.52
-1.48
(-0.82%)
As of 3:28:15 PM EDT. Market Open.
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