Advanced Micro Devices (NASDAQ:AMD) is the latest large-cap tech company to plunge after the release of some strong quarterly earnings results.
Stock futures are little changed this morning after a downturn in tech shares sent major indexes lower on Tuesday; AMD stock is sharply lower as the bar remains high for chipmakers to impress investors with their earnings reports; shares of a wide range of companies, including Eli Lilly, Chipotle, Uber and Super Micro Computer are making big moves this morning following the release of quarterly results; Google parent Alphabet is scheduled to release its earnings report after the closing bell; and shares of Silicon Laboratories are surging following news it will be acquired by Texas Instruments. Here's what you need to know today.
Yesterday, Advanced Micro Devices unveiled better-than-expected Q4 2025 results, with revenue of $10.27B (+34% y/y) and EPS of $1.53 (+40% y/y), crushing street estimates. Data Center momentum, driven by EPYC processors and Instinct GPUs, positions AMD for >60% annual revenue growth in this segment over the next 3–5 years. TQI's Valuation model indicates a fair value of $405/share and a 5-year price target of ~$733, implying a 27% CAGR and supporting a 'Strong Buy' rating.
Advanced Micro Devices (AMD) delivered strong FY 2025 diluted EPS growth, driven by accelerated Data Center and resilient Client and Gaming segment performance. AMD's Data Center segment achieved 32% annual growth, aided by a one-off $390 million China GPU export revenue boost. Despite gains, AMD lost 1% Data Center revenue share versus 2024, with Nvidia maintaining dominance in the most lucrative AI datacentre market.
AMD dropped 9% in early premarket trading on Wednesday. Some analysts had predicted the chipmaker would provide stronger guidance for the first quarter amid an ongoing AI boom.
Wall Street analysts are reacting to Advanced Micro Devices' (NASDAQ: AMD) Q4 2025 earnings with mixed price outlooks, even as the stock suffers short-term losses.
Advanced Micro Devices is unfairly punished post-Q4 despite beating earnings expectations and showing strong segment growth. Data center and client revenues surged, with AMD poised for structural gross margin expansion as 2nm products ramp through 2026. AMD's systems-level pivot, OpenAI partnership, and 2nm manufacturing edge underpin a 114% upside potential to $477/share in 12–16 months.
Advanced Micro Devices shares fell over 6% in early Frankfurt trading on Wednesday after the company forecast a slight decline in quarterly revenue, raising concerns about whether it can effectively challenge Nvidia in the booming AI market.
Advanced Micro Devices, Inc. (AMD) Q4 2025 Earnings Call Transcript
Advanced Micro Devices, Inc. delivered record Q4 2025 results, beating revenue and EPS estimates, yet shares dropped 8% post-earnings due to sentiment and guidance concerns. Data Center revenues surged 39% YoY to $5.38B, now over half of AMD's total, driving operating leverage and margin expansion despite temporary China-related headwinds. Gross margin volatility stemmed from U.S. export restrictions impacting MI308 GPU sales to China; Q1 2026 guidance implies 55% margin and sequential revenue decline, unsettling investors.
Advanced Micro Devices, Inc. delivered strong Q4 results, beating consensus on both revenue and earnings, yet shares declined due to valuation concerns. Data center revenue growth accelerated to 39% YoY, making it AMD's key growth driver, while gaming and client segments also contributed robustly. Despite expanding gross margins and a positive Q1 outlook, AMD's lack of operating leverage and rising expenses limited earnings upside.
The headline numbers for Advanced Micro (AMD) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.