AMD beats Q4 revenue expectations on data center growth

Data Center segment revenue grew 42 percent to $1.7 billion during the fourth quarter.

AMD's forecast mirrored Intel Corp's gloomy outlook for the PC market, which, according to Intel Chief Executive Pat Gelsinger, is seeing "some of the largest inventory corrections literally that we've ever seen in the industry."

PC shipments fell 16.5 percent to 292.3 million units in 2022, according to data from research firm IDC.

The chip designer had already started under-shipping in response to plummeting processor demand as customers looked to clear their inventory stash before buying more chips.

This decline led chipmakers to slash revenue forecasts, triggering a sell-off in chip stocks. AMD's stock fell 55 percent last year, underperforming the Philadelphia SE Semiconductor index during an industry downturn.

Slowing demand for graphics cards, used to enhance visuals and performance on personal computers, also took a toll, while growing signs of enterprise and cloud spending slowdown was an added blow.

Adjusted fourth-quarter revenue rose 16 percent to $5.60 billion. Analysts on average were expecting revenue of $5.50 billion, according to Refinitiv data.

The company forecast current-quarter revenue of $5.3 billion, plus or minus $300 million. Analysts on average expected revenue of $5.48 billion, according to Refinitiv data.