On Tuesday afternoon, Advanced Micro Devices (NASDAQ: AMD) released its fourth-quarter 2023 report. The chipmaker's quarterly results didn't contain any notable surprises, but its first-quarter 2024 revenue guidance was lighter than Wall Street had been expecting. That led to investors driving shares down 2.5% on Wednesday.

That stock drop probably would have been steeper had management not provided good news on the earnings call about its recently launched Instinct MI300-series graphics processing units (GPUs) for data centers. These chips are optimized to accelerate artificial intelligence (AI) workloads, which is the fast-growing market that Nvidia dominates.

In Q4, AMD's revenue grew 10% year over year to $6.17 billion, slightly surpassing the analyst consensus estimate of $6.13 billion. Adjusted earnings per share (EPS) increased 12% to $0.77, which was in line with Wall Street's projection. For the first quarter of 2024, management guided for revenue growth of about 1% year over year, missing the 7% growth analysts had expected.

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Source Fool.com