AMD Earnings Preview: Market Focuses on AI Chips, Q4 Revenue Expected to Slightly Exceed Expectations

AMD is scheduled to release its fourth-quarter earnings report after the market closes on January 30th, Eastern Time. So, what can we expect from AMD's Q4 earnings report? Let's first take a look at AMD's business model. AMD, founded in 1969 and headquartered in Sunnyvale, California, primarily designs and manufactures microprocessors and graphics chips for computing and other applications. The company's business can be divided into four main segments: data center, gaming, client, and embedded. The data center segment focuses on products for cloud computing, enterprise, and high-performance computing. This includes the Instinct MI GPU accelerator, AI components in Xilinx, and DPU products from Pensando. The gaming segment primarily involves the semi-custom business of producing SOC for game console manufacturers (such as PS5, Xbox), as well as consumer-grade Radeon graphics cards and RadeonPro graphics cards for workstations. In the client segment, AMD offers Ryzen and Athlon processors for desktop and laptop computers, as well as Threadripper PRO processors and Ryzen Pro processors for workstations. The embedded segment includes Ryzen and Epyc embedded processors, as well as Xilinx's ALVEO, VERSAL, and ZYNQ series products, which are mainly targeted at users in healthcare, industrial, robotics, automotive, computer vision, and other fields.