Advanced Micro Devices (NASDAQ: AMD) reported its fourth quarter financial results during after market hours on Tuesday. The chip maker reported in-line earnings but missed revenue estimates. Despite missing revenue estimates, shares rose by 7.6% shortly after AMD reported its results.

For the fourth quarter, AMD reported earnings of USD 8 cents on revenue of USD 1.42 Billion. Refinitiv analysts expected earnings of USD 8 cents on revenue of USD 1.44 Billion.

AMD’s computing and graphics segment revenue was USD 986 Million, increasing by 9% year over year. The segment was driven by stronger sales of its Ryzen processors. Client processor average selling price (ASP) also rose year-over-year as well as GPU ASP.

Enterprise, embedded and semi-custom segment revenue was USD 433 Million, which remained flat year-over-year. However, shares slipped by 39% quarter-over-quarter due to lower seasonally semi-custom sales, partially offset by strong EPYC datacenter processor sales.

"In 2018 we delivered our second straight year of significant revenue growth, market share gains, expanded gross margin and improved profitability based on our high-performance products. Importantly, we more than doubled our EPYC processor shipments sequentially and delivered record GPU datacenter revenue in the quarter," said Lisa Su, AMD president and Chief Executive Officer.

As for the full year, AMD reported revenue of USD 6.48 Billion, increasing by 23% year-over-year and earnings of USD 46 cents per share. The stronger annual revenue was driven primarily by the computing segment.

For the first quarter of 2019, AMD expects revenue of USD 1.25 Billion, plus or minus USD 50 Million, increasing 24% year-over-year. The decrease is due to lower graphics sales due to excess channel inventory, the absence of blockchain-related GPU revenue, and lower memory sales.

AMD also said it expects semi-custom revenue to be lower while Ryzen, EPYC, and Radeon datacenter GPU product sales are expected to increase.