What happened to AMD stock on Wednesday? – Advanced Micro Devices (NASDAQ: AMD)

Advanced Micro Equipment Company AMD The company’s fourth-quarter financial results were followed by shares on Wednesday morning. After printing, several analysts also lowered their price targets.

• Fourth quarter revenue: $7.66 billion, estimated at $7.53 billion

• Q4 adjusted EPS: $1.09, estimated at $1.08

Total revenue increased by 12% year-on-year, with data center revenues of $3.9 billion, up 69% year-on-year. The data center results were lower than analysts’ expectations of $4.14 billion. As investors continue to focus on AI growth, data center numbers appear to be the main factor in weighing stocks.

Revenue in the client sector totaled US$2.3 billion, up 58% year-on-year. Game revenue fell 59% year-on-year to $563 million, while embedded revenue fell 13% year-on-year to $923 million.

“2024 is a year of change for AMD as we bring record yearly revenue and strong revenue growth.” Lisa SueChairman and CEO of AMD. “As the adoption of EPYC processors accelerates, data center revenues have almost doubled, and we provide over $5 billion in instinct accelerator revenue.”

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Q1 Outlook: AMD expects revenue in the first quarter to be approximately $7.1 billion, plus or subtract from $300 million. The company’s revenue guidance grew by about 30% year-on-year at the midpoint.

“From 2025, we see continued growth opportunities for strength based on our product portfolio and the growing demand for high performance and adaptive computing,” Su said.

Sue noted on the call that the company expects to “achieve double-digit revenue and EPS growth” this year.

KeyBanc analyst John Vinh maintained AMD’s overweight rating and lowered his target from $150 to $140 after the company’s quarterly results. BOFA Securities analyst Vivek Arya maintained a neutral rating and lowered her target from $155 to $135. Benchmark analyst Cody Acree kept the buy and lowered his target from $200 to $170.

AMD price action: AMD stock fell 9.9% at the time of publication to $107.67, according to Benzinga Pro.

Photo: courtesy of AMD.