What happened Shares of Advanced Micro Devices (AMD 12.37%) jumped on Wednesday after the chipmaker’s financial results helped assuage investors’ fears of a worsening tech downturn. As of 3:15 pm ET, AMD’s stock price was up more than 12%. So what AMD’s revenue rose 16% year over year to $5.6 billion in the fourth quarter. Strength in the semiconductor-leader’s data center and embedded divisions more than offset weakness in its client and gaming segments. AMD’s data center revenue soared 42% to $1.7 billion, driven by the continued growth of the cloud computing market and strong sales of its highly regarded EPYC server processors. AMD’s new chips are helping it take market share from rival Intel, which has struggled with costly production delays. Meanwhile, sales in AMD’s embedded segment — which supplies computing systems to industrial, healthcare, and other tech-adjacent markets — grew nearly 20-fold to $1.4 billion. AMD’s acquisition of Xilinx in February has made it a leader in this booming area. These gains offset to 7% decline in AMD’s gaming revenue, to $1.6 billion, and steep losses in its client business. The chip-giant’s client-segment revenue fell 51% to $903 million, due to a slowdown in the personal computer (PC) market. “2022 was a strong year for AMD as we delivered best-in-class growth and record revenue despite the weak PC environment in the second half of the year,” CEO Lisa Su said. “We accelerated our data center momentum and closed our strategic acquisition of Xilinx, significantly diversifying our business and strengthening our financial model.” All told, AMD’s adjusted earnings per share increased by 25% to $3.50 in 2022. Now what During an interview with CNBC, Su said the worst could soon be over for the company’s PC-related business. “First quarter should be the bottom for us in PCs and then grow from there into the second quarter and then into the second half,” Su said. Better still, Su expects AMD to continue to outpace its competitors in its key markets. “Although the demand environment is mixed, we are confident in our ability to gain market share in 2023 and deliver long-term growth based on our differentiated product portfolio,” Su said. Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool recommends the following options: long January 2023 $57.50 calls on Intel, long January 2025 $45 calls on Intel, and short January 2025 $45 puts on Intel. The Motley Fool has a disclosure policy.