By Connor Hart

Advanced Micro Devices' revenue climbed in the fourth quarter, driven by continued demand for its artificial-intelligence offerings.

The Santa Clara, Calif., chip maker posted a profit of $482 million, or 29 cents a share, for its quarter ended Dec. 28, compared with $667 million, or 41 cents a share, a year earlier.

Adjusted per-share earnings came in at $1.09, narrowly beating the $1.08 that analysts polled by FactSet were expecting.

Revenue increased 24% to $7.67 billion. Analysts had modeled $7.53 billion.

Sales across AMD's data center division, which includes its AI chips, jumped 69% to $3.9 billion. The company attributed the increase to the ramp of its Instinct chip.

Its client, or personal-computing, revenue rose 58% to $2.3 billion. The gain was slightly offset by the company's gaming unit, where sales fell 59% to $563 million, and its embedded segment, down 13% to $923 million.

Chief Executive Lisa Su said there are clear opportunities for the company to continue growing in 2025, citing its product portfolio and growing demand for high-performance and adaptive computing.

For the current quarter, AMD guided for revenue between $6.8 billion and $7.4 billion, the midpoint of which beat the $7 billion that analysts surveyed by FactSet had forecast.

The company has stood out as a winner in the AI craze, supplying chips used to create and deploy tools that produce human-like text, images and video. As part of a shift in AMD's broader business strategy towards AI, it said in November that it would reduce its global workforce by 4%, or about 1,040 jobs.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

02-04-25 1706ET