Advanced Micro Devices (AMD) reported its fourth-quarter 2022 earnings, surpassing Wall Street's expectations for sales and profits. The company reported an adjusted EPS of $0.69 per share, compared to the expected $0.67 per share, while revenue was $5.6 billion, compared to the estimated $5.5 billion.

However, AMD guided analysts to a 10% decline in year-over-year sales in the current quarter, with the company expecting $5.3 billion in sales, compared to the Refinitiv estimate of $5.47 billion.

AMD attributes its strong performance to the growth of its embedded and data centre businesses, which rose 42% year-over-year to $1.7 billion and grew by 1,868%, respectively.

This suggests that AMD has taken market share from its primary competitor, Intel, which reported a weak quarter last week, including a 40% decline in year-over-year sales in the March quarter. However, AMD's client group, which includes sales from PC processors, was down 51% year-over-year, as the PC market continues to decline.

Despite the decline in the PC market, AMD CEO Lisa Su expressed confidence in the company's ability to gain market share in 2023 and deliver long-term growth, based on its differentiated product portfolio.