AMD Reports Strong Q4 Earnings Amid AI Chip Demand Surge

SANTA CLARA, Calif. — Advanced Micro Devices (AMD) is set to report its fourth-quarter earnings after the market closes Tuesday, with analysts projecting significant revenue and earnings growth driven by strong demand for artificial intelligence (AI) chips.

The semiconductor giant is expected to post revenue of $7.54 billion, a 22% increase year-over-year, and earnings of $1.1 billion, or 67 cents per share, up from $667 million, or 41 cents per share, in the same period last year. Of the 14 analysts covering the stock, eight have issued a “buy” or equivalent rating, while five recommend holding and one suggests selling. The consensus price target is $164, roughly 40% above Tuesday’s intraday price of $117.46.

Despite a challenging year for AMD shares, which have lost nearly a third of their value over the past 12 months, the company remains a key player in the competitive AI chip market. Analysts from Bank of America and Raymond James recently noted that competition from Chinese firms, such as those claiming to offer cost-efficient AI models, could push U.S. tech companies, including AMD, to increase their AI investments.

“Spending for AI continues unabated,” Citi analysts said last week, highlighting Meta‘s plans to invest heavily in AI this year. This trend is seen as positive for AMD and its rivals, including Broadcom.

AMD’s performance in the AI sector is closely watched as it competes with industry leader Nvidia. The company’s ability to innovate and capture market share in the rapidly growing AI space will be critical to its future success.