After Advanced Micro Devices (AMD) posted fourth-quarter earnings, shares dropped by around 9%. The chip supplier, which often plays catch up to Nvidia (NVDA), posted record revenue. However, data center revenue rates slowed.
AMD posted adjusted earnings per share of $1.09. Revenue of $7.7 billion was a record, beating estimates. Data Center annual revenue nearly doubled. CEO Lisa Su said that AMD Instinct accelerator accounted for over $5 billion. Still, the revenue included both Instinct and EPYC CPU sales. AMD needed GPU-based server sales to increase.
In the PC market, AMD has a winning CPU. The x3D architecture is preferable to Intel’s (INTC) 13th and 13th-generation chips. Intel’s latest Core Ultra chips are also out of favor.
Search engine giant Alphabet (GOOG) might open down by around 7.0% this morning. The company posted a $2.15 Q4 GAAP EPS. Revenue of $96.5 billion is 11.8% higher Y/Y.
The market’s negative reaction to Alphabet’s strong results last night is unusual. Still, cloud revenue is an issue. Investors expected this segment to beat expectations. The results suggest that AI-related investments are at or near a peak.
Alphabet is a bargain-priced stock. Its EPS rise from $5.80 to $8.04 is an impressive accomplishment for its size. The company is a $2.53 trillion market capitalization firm, based on a $206.38 share price.
