Advanced Micro Devices, Inc. (NASDAQ: AMD ) has been on the decline as the company reported Q4 earnings that evidently didn't meet investor expectations. With shares down close to 10% since Tuesday's report, the time has come for shareholders toTo follow me click the "Follow" button! (Easy right?) Hi there, thanks for coming to my profile page! My name is Kumquat Research (but you can call me Jeremy) and I've been writing for Seeking Alpha on and off for going on ten years now, beginning with my inaugural p ...

A lot has happened to Advanced Micro Devices (NASDAQ: AMD ) in the past 1~2 months since I last wrote on the stock. My last article, titled "AMD: 2 Reasons To Be Greedy When Others Are Fearful,” was published As you can tell, our core style is to provide actionable and unambiguous ideas from our independent research. If your share this investment style, check out Envision Early Retirement. It provides at least 1x in-depth articles per week on such ideas.We have helped our members not only to beat S&P 500 bu ...

Oliver Rodzianko is an investment analyst specializing in the technology sector, grounded in timeless value principles. His expertise spans AI, semiconductors, software, and renewable energy, with a focus on companies that demonstrate resilient management and lasting competitive advantages. A trusted voice in financial analysis, Rodzianko’s insights are frequently highlighted as 'Must Reads' on Seeking Alpha, syndicated to Forbes via GuruFocus, and published on TipRanks.Rodzianko specializes in value tradin ...

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AI and Data Center Strategy - AMD's Data Center segment saw strong demand for AI accelerator products, particularly the AMD Instinct™ MI300X GPUs, indicating robust growth in this area[20]. - The company announced the completion of the acquisition of Silo AI Oy, enhancing its capabilities in AI model development and deployment on AMD hardware[21]. - AMD plans to acquire ZT Group Int'l, Inc. (ZT Systems) to bolster its data center AI solutions, with the acquisition expected to close in the first half of fiscal year 2025[22]. - The launch of the 5th Gen AMD EPYC™ family of server processors aims to provide leadership performance for a wide range of data center workloads[20]. - AMD's AI strategy focuses on delivering high-performance adaptive hardware and software solutions, expanding partnerships, and enhancing user experiences[19]. - The company has accelerated its AMD AI accelerator roadmap to ensure a consistent release of leadership AMD Instinct solutions annually[20]. - AMD's latest AMD Ryzen AI 300 Series processors feature a neural processing unit (NPU) for next-generation AI PCs, showcasing advancements in AI capabilities[32]. - The AMD ROCm™ open software stack has been optimized to improve performance in key generative AI workloads, enhancing the developer experience[23]. - AMD's commitment to high-performance leadership is reflected in the launch of the AMD Ryzen PRO 8000G series desktops, which offer integrated AI solutions for enterprises[33]. - Demand for products in the Data Center segment has surged since Q4 2023, particularly for AI accelerators, driven by the adoption of generative AI solutions[109]. - The Data Center segment primarily serves hyperscale data centers and OEMs, with products like server CPUs and GPU accelerators being critical for cloud computing and AI workloads[50]. Financial Performance - Net revenue for the year ended December 28, 2024, was $25.785 billion, an increase from $22.680 billion in the previous year, representing a growth of approximately 9.2%[299]. - Gross profit for the same period was $12.725 billion, compared to $10.460 billion in the prior year, indicating a gross margin improvement[299]. - Operating income rose to $1.900 billion from $401 million, reflecting a significant increase in operational efficiency[299]. - Net income for the year was $1.641 billion, up from $854 million, resulting in a diluted earnings per share of $1.00 compared to $0.53 in the previous year[299]. - International sales accounted for 66% of total net revenue for the year ended December 28, 2024, highlighting the company's reliance on global markets[191]. - Research and development expenses increased to $6.456 billion from $5.872 billion, underscoring the company's commitment to innovation[299]. Market Competition - AMD competes with Intel and NVIDIA in the Data Center segment, particularly for CPU, GPU, and DPU server products[60]. - In the Gaming segment, AMD leads in semi-custom game console products, while facing competition from NVIDIA in discrete graphics[62]. - Competition in the semiconductor market is intense, with major players like Intel and Nvidia exerting significant pressure on pricing and market share[102][103]. - The company expects continued competition in the embedded segment from major FPGA competitors such as Intel and Lattice Semiconductor, as well as from ASIC vendors like Broadcom and NVIDIA[63]. Supply Chain and Manufacturing Risks - The company relies on third-party manufacturers for product production, which poses risks if these partners cannot meet demand or quality standards[98]. - The company relies on a small number of customers for a substantial portion of its revenue, which poses a risk if any key customer reduces demand or stops purchasing products[114]. - The company has a wafer supply agreement with GLOBALFOUNDRIES that guarantees a minimum annual capacity allocation through 2026, which is crucial for managing inventory and production costs[122]. - The company relies on third-party manufacturers for critical components, and any disruption could materially affect business operations[139]. - The company relies on third-party distributors and AIB partners, which poses risks if significant partners terminate their relationships or prioritize competitors' products[141]. - The company relies on a limited number of suppliers for essential equipment and materials, which poses risks of supply shortages and increased production costs[127]. Regulatory and Compliance Challenges - New export control regulations may restrict the company's ability to sell products to certain markets, particularly in China, impacting sales and operations[157]. - The company is subject to legal and regulatory risks that could limit its ability to export products, particularly in the context of U.S.-China trade relations[156]. - The company is subject to International Traffic and Arms Regulations (ITAR) and Export Administration Regulation (EAR), which complicate forecasting shipments due to potential licensing issues[159]. - Environmental laws and regulations may impose additional costs and liabilities, impacting the company's operations and financial condition[169]. - The company is named as a responsible party at three Superfund sites, which could lead to unforeseen remediation costs[169]. - New regulations regarding conflict minerals and forced labor may increase compliance costs and impact supplier relationships[172]. Corporate Governance and Responsibility - The company has set corporate responsibility goals influenced by stakeholder input, which may change due to various risks and challenges[177]. - Corporate responsibility expectations from stakeholders may lead to additional compliance costs and potential reputational harm[176]. - The company anticipates growth in its AI-related business, despite facing legal, social, and ethical concerns that could impact adoption and financial results[179]. Employee and Organizational Insights - The company reported a global workforce of approximately 28,000 employees as of December 28, 2024, emphasizing a culture of innovation and engagement[72]. - The company’s employee engagement scores rank in the top 10% of high-performing technology industry peers, reflecting a strong culture of inclusion and innovation[75]. Strategic Acquisitions and Investments - The company completed the acquisition of Silo AI in August 2024 and plans to acquire ZT Systems, expected to close in the first half of 2025, subject to regulatory approvals[184]. - The company may incur a termination fee of $300 million if the acquisition of ZT Systems is not completed due to failure in obtaining necessary regulatory approvals[188]. - The company invests in both public and private companies to support strategic objectives, with potential volatility in results due to market conditions[187]. - The company may not realize expected benefits from joint ventures and acquisitions, which could impair growth and operational capabilities[185]. Economic and Market Conditions - Economic and market uncertainties may adversely impact business operations and results, particularly in the context of fluctuating demand across various segments[108]. - Economic uncertainty, including inflation and higher interest rates, may negatively impact consumer confidence and spending, affecting the company's sales[115]. - The semiconductor industry is highly cyclical, with significant downturns impacting business performance and leading to substantial losses in previous downturns[108].

Key TakeawaysAdvanced Micro Devices shares plunged Wednesday after the chipmaker’s data center sales missed expectations.Analysts said AMD hasn’t shown how it can compete with Nvidia’s dominance in the AI chip market. However, some called the selloff an overreaction, pointing to the strength of the company's client CPU segment.  Advanced Micro Devices (AMD) shares plunged Wednesday and several analysts dropped their price targets after the chipmaker’s data center sales missed expectations.  Bank of America ...

Advanced Micro Devices (NASDAQ: AMD) saw its stock fall over 10% on Wednesday, February 5, after missing Wall Street expectations for its key data center segment.While the chipmaker exceeded revenue and earnings forecasts, its data center revenue came in at $3.86 billion—falling short of the $4.14 billion analysts had projected.The disappointing figures sent AMD shares to a new 52-week low of $106.5 before rebounding. As of press time, the stock trades at $110, marking a 7% recovery on the day. AMD one-day ...

Advanced Micro Devices (AMD) reported fourth-quarter 2024 non-GAAP earnings of $1.09 per share, beating the Zacks Consensus Estimate by 1.10%. The figure surged 31.4% year over year. Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Revenues of $7.658 billion beat the Zacks Consensus Estimate by 1.61% and increased 24.2% year over year, as well as 12% sequentially. The top-line growth benefited from robust Data Center and Client revenues that were partially offset by sluggishness in the ...

Advanced Micro Devices Inc (NASDAQ:AMD) is the talk of Wall Street today, last seen down 9.4% to trade at $108.23. The chipmaker is getting bashed after a lackluster fourth-quarter report that saw a top-line beat overshadowed by its data center arm reporting less-than-stellar revenue estimates. AMD earlier traded at a two-year low of $106.50, and is on track for its worst single-session decline since its Oct. 30 post-earnings bear gap. The shares have carved a channel of lower lows since October, and are no ...

In this video, I go over AMD's (AMD -8.25%) fourth-quarter earnings report. Watch the short video to learn more, consider subscribing, and click the special offer link below.*Stock prices used were from the trading day of Feb. 4, 2025. The video was published on Feb. 4, 2025. ...