- AMD’s 4Q revenue was $6.17 billion, marking a 10% increase year-over-year, meeting the estimate of $6.13 billion.
- Data center revenue reached $2.28 billion, a 38% increase year-over-year, slightly under the estimate of $2.3 billion.
- Gaming revenue was at $1.37 billion, showing a 17% decrease year-over-year, but surpassing the estimate of $1.25 billion.
- Client revenue stood at $1.46 billion, a significant 62% increase year-over-year, falling short of the estimated $1.51 billion.
- Embedded revenue was at $1.06 billion, a 24% decrease year-over-year, in line with the estimate of $1.06 billion.
- The adjusted gross margin was 51%, the same as the previous year, against an estimated 51.5%.
- Capital expenditure was $139 million, a 12% increase year-over-year, surpassing the estimate of $120.8 million.
- Adjusted operating income was $1.41 billion, slightly lower than the estimated $1.43 billion.
- The adjusted operating margin remained steady at 23% year-over-year, slightly under the estimate of 23.2%.
- Free cash flow was $242 million, a 45% decrease year-over-year, significantly lower than the estimate of $1.73 billion.
- R&D expenses were $1.51 billion, slightly lower than the estimated $1.52 billion.
- For the first quarter of 2024, AMD expects revenue to be around $5.4 billion, with a margin of error of $300 million.
- AMD’s shares fell 3.8% in post-market trading to $165.50 with 189,593 shares traded.
- AMD received 41 buy ratings, 13 hold ratings, and 2 sell ratings.
- AMD’s EVP, CFO and Treasurer Jean Hu stated that AMD performed well in 2023 despite a mixed demand environment, driving year-over-year revenue growth in the Data Center and Embedded segments.
- AMD successfully launched the AMD Instinct MI300 GPUs, positioning the company for a strong product ramp in 2024.
Advanced Micro Devices on Smartkarma
Advanced Micro Devices (AMD) has been receiving positive coverage from independent analysts on Smartkarma, an investment research network. William Keating, a leading analyst on the platform, predicts that despite a potential 4% decline in revenues for FY23, the company’s renewed growth in the data center market and entrance into the AI acceleration segment will reignite its success in 2024. This is supported by Baptista Research, who highlights AMD’s surpassing of revenue and earnings expectations, notable AI developments, and strong growth in the PC and data center segments.
Keating also forecasts that AMD’s MI300 will generate over $2 billion in revenue in 2024, making it the company’s fastest product ramp to $1 billion. Meanwhile, Baptista Research credits AMD’s strategic execution and notable achievements for their steady performance in the previous quarter, despite a decline in revenue. They also note the potential for growth in the data center segment, as cloud providers continue to adopt AMD’s fourth-gen EPYC CPUs. However, Keating questions whether AMD can truly compete with NVIDIA in the AI acceleration market with their MI300 launch.
A look at Advanced Micro Devices Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The future looks bright for Advanced Micro Devices (AMD) based on the Smartkarma Smart Scores. The company has received high scores in several categories, including Resilience and Momentum, indicating a positive outlook for the long term. AMD, a producer of semiconductor products and devices, has been consistently delivering products such as microprocessors, chipsets, and graphics to its global customers. With a high score of 4 in Resilience, the company has demonstrated its ability to withstand market fluctuations and maintain its position in the industry.
Moreover, with a score of 5 in Momentum, AMD is expected to continue its upward trajectory in the market, driven by its strong performance and growth potential. While the company has received a lower score of 2 in Value and Growth, it is important to note that these scores are relative and do not reflect any significant concerns for the company’s overall outlook. In summary, based on the Smartkarma Smart Scores, Advanced Micro Devices is well-positioned to thrive in the semiconductor industry and provide value to its customers worldwide.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
