AMD's fourth-quarter results showcased strong revenue growth and margin expansion, driven by broad-based demand for high-performance computing and AI products. CEO Lisa Su highlighted “accelerating Instinct MI350 Series GPU deployments and server share gains.” The data center and client segments both contributed meaningfully, while embedded segment growth returned. Cautious remarks surfaced about inflationary pressures and memory costs in the PC market, with Su noting the PC total addressable market “down a bit just given some of the inflationary pressures.”
Is now the time to buy AMD? Find out in our full research report (it’s free for active Edge members).
AMD (AMD) Q4 CY2025 Highlights:
- Revenue: $10.27 billion vs analyst estimates of $9.69 billion (34.1% year-on-year growth, 6% beat)
- Adjusted EPS: $1.53 vs analyst estimates of $1.32 (16% beat)
- Adjusted EBITDA: $3.05 billion vs analyst estimates of $2.39 billion (29.7% margin, 27.4% beat)
- Revenue Guidance for Q1 CY2026 is $9.8 billion at the midpoint, above analyst estimates of $9.40 billion
- Operating Margin: 17.1%, up from 11.4% in the same quarter last year
- Inventory Days Outstanding: 163, up from 158 in the previous quarter
- Market Capitalization: $352.2 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From AMD’s Q4 Earnings Call
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Aaron Rakers (Wells Fargo) asked about customer engagement and demand shaping for the MI450 and Helios platforms. CEO Lisa Su confirmed strong ramp plans with OpenAI and other customers, stating they are “on track for a second-half launch.”
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Tim Arcuri (UBS) pressed for detail on the first quarter guidance and data center GPU ramp. CFO Jean Hu explained that data center revenue is expected to rise even as client and gaming segments follow seasonal declines.
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Vivek Arya (Bank of America) questioned the sustainability of 60%+ annual data center growth and China AI GPU sales. Su clarified no new China revenue is forecast beyond Q1 but emphasized strong data center prospects driven by new product launches.
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CJ Muse (Cantor) asked about server CPU supply constraints and margin dynamics. Su responded that AMD has increased supply capacity in anticipation of strong demand, while Hu described gross margin improvements from favorable product mix.
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Joshua Buchalter (TD Cowen) inquired about client segment order patterns and Instinct’s competitive positioning for inference workloads. Su noted stable client demand despite inflationary pressures and highlighted architectural flexibility for evolving inference requirements.
Catalysts in Upcoming Quarters
In the coming quarters, StockStory’s analysts will watch (1) the ramp and customer adoption of the MI450 series and Venice CPUs, (2) execution on expanding supply for high-bandwidth memory and server CPUs amid tight supply chains, and (3) evidence of growth in the embedded segment and stabilization in gaming. The regulatory landscape for AI exports to China and the impact of commodity price inflation on client demand will also be critical signposts.
AMD currently trades at $215.12, down from $242.11 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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