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Advanced Micro Devices reported better than expected Q4 earnings after the close Tuesday but guided revenue lower than expected over the year. $AMD has been on a tear in 2019, it was down 4% after the report.

AMD Radeon VII

AMD Radeon™ VII, the world’s first 7nm gaming graphics card for latest AAA, esports and Virtual Reality (VR) titles. 

Advanced Micro Devices, Inc. NASDAQ: AMD Reported Earnings After Close Tuesday

$0.32 Beating $0.31 EPS  But Missed $2.13B v. $2.11 Billion Forecast in Revenue 

Earnings 

Advanced Micro Devices Inc (AMD) reported fourth-quarter 2019 earnings after the close on Jan 28 ofGAAP net income at $170 million, or $0.15 per share, compared to $38 million, or $0.04 per share, last year. Adjusted net income was $383 million, or $0.32 per share. Analysts had forecast adjusted EPS of $0.31. Total revenue of $2.13 billion was up 50% from the same period last year and above forecasts of $2.11 billion. Revenue growth was driven mainly by the Computing and Graphics segment.

AMD chief competitprs are NVIDIA (NVDA) and Intel.  Analysts will be keyed into GPU adoption rates of AI techniques and machine learning tools in industries like gaming, automotive and blockchain.  Strong adoption of EPYC server processors is another growth catalyst.

AMD has partnerships with major game developers including Ubisoft, Capcom and Rebellion to optimize their next generation of games on Radeon graphics in a most competitive marketplace. 

Advanced Micro Devices, Inc. NASDAQ: AMD

Market Reaction: After Hours $49.01▼ 1.52 (-3.01%)

Highlights

Computing and Graphics segment revenue was $1.66 billion, up 69% year-over-year, driven mainly by strong sales of Ryzen processors and Radeon gaming GPUs.

Enterprise, Embedded and Semi-Custom segment revenue was $465 million, up 7% year-over-year driven by higher EPYC processor sales.

Advanced Micro Devices Q4 2019 Earnings

Outlook

For the first quarter of 2020, AMD expects revenue to be approx. $1.8 billion, plus or minus $50 million. Analysts had estimated revenue of $1.86 billion.

For the full year of 2020, AMD expects revenue to grow approx. 28-30% over 2019.

Cash, cash equivalents and marketable securities were $1.50 billion at the end of the quarter.

 

Tesla AI Chip From AMD


Tesla Self DrivingAMD Artifical Intelligence Chips are used in Tesla autonomus driving

Tesla $TSLA has been developing an Articial Intelligance (AI) Chip for self driving car using $AMD intellectual property.Tesla's new chip will likely reduce its reliance on Nvidia $NVDA. $AMD spin-off GlobalFoundries CEO Sanjay Jha said it's working directly with Tesla on the chip. GlobalFoundries has a wafer supply agreement in place with AMD through 2020.

Tesla has over 50 employees involved in the project, including the head of Autopilot hardware and software Jim Keller. Keller joined Tesla in early 2016 following two stints at AMD and one at Apple. Keller is reknowned in the industry and his chips include the design of Apple's A4 and A5 iPhone chips.

Last September CNBC reported that sources say $TSLA has received back samples of the first implementation of its processor and is now running tests on it.Tesla CEO Elon Musk has promised that autonomous driving capability will be available to consumers in 2019. The key is a chip that power-efficient and able to harness AI to drive a car autonomusy. Current Tesla autopilot self-driving vehicles use Nvidia graphics processing units and Tesla has used chips from Mobileye (now part of Intel) before. The notorious $TSLA auto pilot accident last year was using Mobileye chips.

Source: AMD

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