Advanced Micro Devices (NASDAQ:AMD) delivered solid FY24 Q4 results, driven by growth in the Data Center and Client segments. But that Data Center revenue fell short of expectations, raising questions about the previously advertised 60% CAGR for the AI accelerator TAM. Forward-looking guidance indicated a similar growth rate in the first half of 2025, which did little to reassure investors. Embedded segment revenue was also below expectations.
While CEO Lisa Su and CFO Jean Hu artfully addressed analyst questions, particularly regarding AI solutions, their responses suggested they were managing and resetting expectations. AMD’s impressive growth and solid client and server positioning are positive signs, but a disconnect between performance and expectations could cause unneeded volatility for the name. For more details, key highlights, and commentary, check out the high-level earnings summary.
