LONDON (ShareCast) - (Sharecast News) - Shares in AMD fell sharply on Wednesday, after quarterly numbers from the US chip maker disappointed.
The Nasdaq-listed firm, which posted fourth-quarter results after the bell on Tuesday, said revenues had come in at $7.66bn, up 24% year-on-year.

Earnings per share were $1.09, marginally higher than the $1.08 forecast by analysts.

However, data centre sales disappointed. Although they surged 69% year-on-year, to $3.86bn, analysts had been expecting a bigger increase to $4.14bn.

The data centre division is a key focus for investors, as it is closely linked to AMD's exposure to the booming artificial intelligence market.

AMD also said it expected group revenues to slow to around $7.1bn, plus or minus $300m, in the first quarter of 2025. It said strong growth in its data centre and client businesses would help offset a "significant slump" in gaming revenues.

The stock had lost 9% in pre-market trading as at 1300 GMT on Wednesday.

Lisa Su, chief executive, said: "2024 was a transformative year for AMD, as we delivered record annual revenue and strong earnings growth.

"Looking into 2025, we see clear opportunities for continued growth based on the strength of our product portfolio and growing demand for high-performance and adaptive computing."

Jefferies, which has a 'buy' rating on the stock, said: "The AI business ended the year on a soft note, and while the second half of the 2025 full-year is expected to reaccelerate, estimates will move lower.

"Overall, the share gains in the core business are not enough to offset the AI miss, and we lower our price target to $135."

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