AMD, a leading semiconductor firm known for its high-performance processors, is set to report its Q4 2024 earnings on Tuesday, February 4, after the closing bell. Its Q4 performance will provide crucial insights into the business’s continuous development and the success of its most recent initiatives.
What’s in Focus?
Ahead of the earnings report, AMD has been in the spotlight for its recent product launches at CES 2025, including the Ryzen AI Max Series and gaming-focused Ryzen Z2 processors, which are expected to strengthen its position in AI computing and gaming markets. ⁽¹⁾
Despite these developments, AMD’s stock has faced volatility. Its share price has struggled over the past year due to rising competition from Nvidia and macroeconomic pressures.
Analysts’ sentiment remained mixed as supply and demand pressure weighed on the stock. Despite these challenges, AMD’s long-term prospects remain optimistic, with the company citing innovation in AI accelerators and strategic partnerships with companies like Dell. ⁽²⁾
Traders and investors will closely watch the upcoming earnings call for updates on AMD’s roadmap and its ability to navigate a competitive semiconductor landscape.
Key Focus Areas for AMD’s Q4 2024 Earnings
- Data Center Growth
AMD’s Data Center segment, driven by EPYC server processors and AI accelerators, is expected to be a major growth driver, forecasted to show an impressive year-over-year surge of 79.71%. ⁽³⁾ Look for insights on cloud adoption, enterprise spending, and AMD’s progress in securing major customers against competitors like NVIDIA and Intel.
- AI Strategy & Competition with NVIDIA
AI chip development remains critical, and AMD has been expanding its AI portfolio, including MI300 AI accelerators. Traders can analyze management’s comments on AI-related revenue contributions, customer adoption, and how AMD plans to compete with NVIDIA’s dominant H100 and upcoming B100 GPUs.
- Gaming Segment & Console Sales
The gaming segment, including Ryzen processors and Radeon GPUs, has seen fluctuating demand. Markets will be paying attention to whether AMD benefited from holiday-season console sales and whether PC gaming demand rebounded.
- Client Computing
AMD’s consumer CPU business, which was weak in prior quarters, may have improved with a recovery in PC demand.
- Guidance for 2025
Future revenue expectations, especially in AI and data center segments, will determine market reactions. Any indication of slower cloud spending, macroeconomic concerns, or competitive pressures could pressure AMD’s stock.
Market Expectations
Wall Street estimates:
- Earnings per share: $1.08
- Revenue: $7.53 bn
AMD’s stock fell earlier this week, along with many other semiconductor stocks exposed to artificial intelligence. This was primarily due to worries about competition from new, low-cost AI models like DeepSeek. ⁽⁴⁾
In the past three months, AMD has faced many analyst downgrades due to concerns about its semiconductor position. Wall Street analysts indicate a less competitive AI GPU roadmap for AMD. They also highlighted weak demand for AMD’s MI325 GPU and anticipated challenges against NVIDIA’s offerings. ⁽⁵⁾
Traders and investors will mostly monitor the company’s future guidance, especially AI forecasted revenue as the company faces pressure from major competitors in the semiconductor sector. Not just from the US but also from global markets. ⁽⁶⁾
Despite these challenges, AMD is a strong rival to market leader Nvidia thanks to its strategic developments in AI-capable CPUs and expanding market share in data centers. It could be argued that AMD’s stock may have room to grow, particularly as it grows its AI and PC businesses. ⁽⁷⁾