The company reported a 10% year-over-year increase in fourth-quarter revenue to $6.2 billion. This was mainly due to the increase in data center sales, which still accelerated significantly towards the end of the year, thanks to the active involvement of AI in targeted advertising. The data center and Ryzen Embedded processor segment grew by $1.2 billion and accounted for more than 50% of Advanced Micro Devices Inc (NASDAQ:AMD)’s total revenue for the fourth quarter. For the full year, data center segment revenue grew 43% year-over-year to a record $2.3 billion. In the fourth quarter, the company also saw its server CPU business, the next-generation EPYC 4 and EPYC 3 processors, double in revenue. Among other things, the company also gained share in servers running its next-generation AMD Instinct AI accelerators, positioning it as the largest provider of adaptive computing in the IT industry. These AMD Instinct MI300 accelerators are connected to AI chips with an ultra-fast 192GB GPU RAM and 5.3TB per second data transfer rate.
Shares of chipmaker Advanced Micro Devices Inc (NASDAQ:AMD) have seen a more than 300% increase since the fall of 2022. This increase shows the cyclical nature of the semiconductor industry. This potential added value associated with AMD chips thanks to Instinct AI accelerators could further boost the company’s sales growth and stock value (NASDAQ:AMD). If the company can defend its market leadership, dominated by Nvidia, we can expect AMD to have another strong quarter. These facts have attracted the attention of multinational investment corporations and private investors to buy shares of Advanced Micro Devices Inc (NASDAQ:AMD) specifically, for which an average target price of $189.78 per share has been set for the short to medium term investment horizon.
