Chipmaker Advanced Micro Devices (AMD) slightly beat fourth-quarter revenue estimates in its latest earnings report — $6.2 billion vs. expectations of $6.13 billion — and coming in line with adjusted EPS figures ($0.77 per share). Additionally, AMD expects first-quarter 2024 revenue to come below Wall Street expectations.

Yahoo Finance's Julie Hyman and Josh Lipton break down AMD's earnings results.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video Transcript

JULIE HYMAN: AMD, which is just out, the chipmaking giant. Initially, we saw the shares fall because of the company's forecast. First quarter revenue says AMD is going to be $5.1 to $5.7 billion. Analysts had been looking for $5.77 billion. But as you can see, the shares are now rising, up 1.1% here. If you look at the fourth quarter numbers, they did beat estimates, fourth quarter revenue of $6.2 billion, ahead of what the Street had been looking for. Fourth quarter earnings per share in line with estimates.

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The company does say that first quarter gross margin is going to be about 52%, which is a little bit better, you could say, than what analysts had been anticipating. But I have to say, I'm not quite sure why we saw the stock fall. It made more sense for the stock to fall with that forecast. But now we're seeing it bounce back.

JOSH LIPTON: And the context here again, Julie-- I'm starting to sound like a broken record here, but again, the ramp into this print, this stock was up-- I mean, year to date, it was already up about 20%, heading into this report. It was up more than 140% over the past 12 months. I think some big questions-- like, again, AI is going to be huge.

Remember, CEO Lisa Su had forecast $2 billion in sales of AI chips in 2024. And I some on the Street thought that was kind of conservative, because they thought there actually might be some upside there. So does Lisa Su give an update there will be really interesting. Kind of talking more about the AI competition, what does she think her advantages are in that fight with NVIDIA? Outlook for the PC market in 2024 critical, what that means for AMD, and of course, the traditional data center business as well.

JULIE HYMAN: You know, I really hope that our viewers are not playing a drinking game with us. Every time we say "ramp" or "AI," they would be in serious trouble here today.

But I'm going to read something that Lisa Su said in the statement here, chair and CEO of AMD-- "Demand for our high performance data center product portfolio continues to accelerate--" I think that's a key word here, "accelerate"-- "positioning us well to deliver strong annual growth in what is an incredibly exciting time, as AI reshapes virtually every part of the computing market."