AMD Stock Surges on Strong Earnings and AI Chip Production Growth

Advanced Micro Devices (AMD) has seen a 5.3% increase in shares since its last earnings report, outperforming the S&P 500. The company reported fourth-quarter 2023 non-GAAP earnings of 77 cents per share, in line with estimates, with revenues of $6.17 billion. Data center revenues surged 38% year over year, while client segment revenues soared 61.8% year over year. However, gaming segment revenues decreased 16.8% year over year. AMD expects first-quarter 2024 revenues to be $5.4 billion, with a mixed demand environment for the year. Estimates have trended downward, and the stock has a Zacks Rank #3 (Hold).