AMD has reported its Q4 2018 and annual 2018 financial results. The Q4 revenue was $1.42B, with earnings of 8 cents per share; an increase of 6% y/y. This missed Wall Street estimates of $1.44 billion in revenue. AMD reported that the growth was driven by the Computing and Graphics segment. Revenue was down 14% compared to the prior quarter as a result of lower revenue in the Enterprise, Embedded and Semi-Custom segment. Also reported was a Non-GAAP Gross Margin of 41% (+7 percentage points Y/Y). Gross margin improvements were primarily driven by Ryzen and EPYC processor sales. Non-GAAP net income of $87M (+$79M Y/Y), and Non-GAAP EPS of .08 (+.07 Y/Y) were also highlighted in the report. AMD announced that strong sales of Ryzen processors contributed to a 9% y/y increase in Computing and Graphics segment revenue and significantly boosted operating income. Datacenter GPU sales were also higher. Strong EPYC datacenter processor sales were offset by lower semicustom sales and server-related investments in the Enterprise, Embedded and Semi-Custom segment. AMD announced its outlook for Q1 2019. AMD expects revenue to be approximately $1.25 billion, plus or minus $50 million, a decrease of approximately 12 percent sequentially and 24 percent year-over-year. "Analysts had projected first-quarter sales to be $1.47 billion, according to a Refinitiv consensus estimate." The sequential decrease is expected to be primarily driven by continued softness in the graphics channel and seasonality across the business. The year-over-year decrease is expected to be primarily driven by lower graphics sales due to excess channel inventory, the absence of blockchain-related GPU revenue and lower memory sales. In addition, semi-custom revenue is expected to be lower year-over-year while Ryzen, EPYC and Radeon datacenter GPU product sales are expected to increase. AMD announced a new amendment to its wafer supply agreement with GLOBALFOUNDRIES Inc. (GF). AMD will still use GF for the 12nm node and above for the years 2019 through 2021. AMD is now free to purchase wafers from any foundry at the 7nm node and beyond without any one-time payments or royalties. AMD president and CEO Dr. Lisa Su's prepared remarks are found here. "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 Dr. Lisa Su, AMD president and CEO. "Despite near-term graphics headwinds, 2019 is shaping up to be another exciting year driven by the launch of our broadest and most competitive product portfolio ever with our next-generation 7nm Ryzen, Radeon, and EPYC products." AMD forecasts 2019 sales to grow in the "high single digit percentage" range. Wall Street had forecast 2019 sales of $6.88 billion, which would represent year-over-year revenue growth of 6 percent.