Advanced Micro Devices’ fourth-quarter results exceeded expectations, with strength in its server processors and cloud computing segments driving higher earnings per share of 69 cents compared to analysts’ estimates of 67 cents. Revenue of $5.6 billion was also above forecasts of $5.51 billion. In response, the company’s shares rose in after-hours trading.

For the current quarter, AMD (ticker: AMD +3.73%) projected a revenue of $5-5.6 billion, coming in slightly lower than the midpoint of the consensus of $5.5 billion. Despite a mixed demand backdrop, AMD Chair and CEO Lisa Su expressed confidence in their ability to capture market share and drive long-term growth thanks to a distinctive product lineup.

Shares of AMD surged in after-hours trading following the release of their quarterly results. However they eventually gave back some of their gains due to concerns of the current economic uncertainty. IDC reported that the worldwide shipments of PCs had decreased by 28% in the December quarter compared to the previous year. During the investor and analyst call, AMD executives mentioned that they could not provide full-year guidance due to the continued economic instability. Despite this, they did mention that a recovery in China would be advantageous for the company. However they could not speculate on the timing of such a rebound.

Intel (INTC) failed to meet expectations in its fourth quarter earnings report last Thursday and projected a revenue outlook for the March quarter which was much lower than analysts had predicted. The comparison of industry analysts showed a considerable price-to-performance disparity between Intel’s Sapphire Rapids server processor and AMD’s Genoa server chip. This could mean that AMD will continue to capture a larger share in the server market for the forthcoming quarters.

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