Should You Buy AMD Stock Before the MI400 Launch?

Core Viewpoint - AMD's stock experienced a significant decline of 17%, marking its worst session since 2017, despite strong fourth-quarter results that exceeded Wall Street expectations. The company's Q1 guidance of $9.8 billion fell short of analysts' high expectations, leading to investor sell-off [1]. Financial Performance - AMD reported fourth-quarter revenue of $10.27 billion and earnings per share of $1.53, both surpassing market expectations [1]. - The company disclosed $390 million in fourth-quarter sales to China from its MI308 chips, which was not included in Street estimates, contributing to the disappointment [4]. - AMD anticipates an additional $100 million from China in the current quarter but is not forecasting further revenue, reflecting a cautious approach due to U.S. export controls [5]. Segment Performance - The data center segment showed robust growth, with revenue increasing by 39% year-over-year to $5.4 billion, driven by EPYC server processors and Instinct AI GPUs [6]. - Server CPU revenue is experiencing sequential growth from Q4 into Q1, indicating strong demand despite typical seasonal weakness [7]. Future Outlook - The upcoming MI400 launch in 2026 is viewed as a critical inflection point for AMD, with CEO Lisa Su emphasizing its importance for the company's future [8].