AMD(US:AMD) Zhi Tong Cai Jing·2026-02-04 00:17Core Insights - AMD's Q4 earnings report disappointed investors, particularly regarding its AI market progress, with Q1 sales forecasted at approximately $9.8 billion, below analyst expectations of $9.39 billion [1] - The company has begun selling an older chip model to China, which boosts sales but compresses profit margins [1] - AMD's stock fell 8% in after-hours trading following the earnings announcement, despite a 13% increase year-to-date [1] Financial Performance - AMD's Q4 revenue grew 34% year-over-year to $10.3 billion, surpassing the average expectation of $9.7 billion [1] - Adjusted earnings per share were $1.53, exceeding the analyst average estimate of $1.32 [1] - Data center revenue increased by 39% to $5.38 billion, above the forecast of $4.97 billion [2] - PC-related sales rose 34% to $3.1 billion, also exceeding the average expectation of $2.89 billion [2] Segment Performance - Gaming revenue for Q4 was $843 million, a 50% year-over-year increase but below the market average expectation of $855 million [4] - Embedded business revenue grew 2.9% to $950 million, falling short of the average forecast of $961 million [4] - The data center segment showed a quarter-over-quarter increase of 23.9% and a year-over-year increase of 39.4% [3] Market Position and Future Outlook - AMD is competing with Nvidia in the AI market, with expectations of launching a new generation of powerful designs in the second half of the year [1] - Recent agreements with OpenAI and Oracle reflect growing market interest in AMD's MI series AI accelerators, which compete directly with Nvidia's chips [5] - AMD's sales from older MI308 chips to China generated $390 million last quarter, with an expected $100 million in the current quarter [5]