AMD(US:AMD) SINOLINK SECURITIES·2026-02-04 07:55Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4]. Core Insights - The company reported a revenue of $10.27 billion for Q4 2025, representing a year-on-year increase of 34%, with a GAAP net profit of $1.511 billion, up 213% year-on-year [2]. - The data center business remains robust, with Q4 2025 revenue reaching $5.38 billion, a 39% increase year-on-year. The company anticipates continued growth in this segment, projecting a revenue growth rate exceeding 60% over the next 3-5 years [3]. - The company expects Q1 2026 revenue to be around $9.8 billion, reflecting a 32% year-on-year increase but a 5% decrease quarter-on-quarter, primarily due to seasonal factors in consumer electronics [3]. Summary by Relevant Sections Performance Review - For Q4 2025, the company achieved a GAAP gross margin of 54% and a Non-GAAP gross margin of 57%. The Non-GAAP net profit for the same quarter was $2.519 billion, a 42% increase year-on-year [2]. Business Analysis - The company forecasts that both data center GPU and CPU revenues will grow quarter-on-quarter in Q1 2026, driven by strong demand for data center CPUs. The company is optimistic about the CPU market, expecting high double-digit growth in 2026 [3]. - The company anticipates significant revenue from the MI400 series products in the second half of 2026, with the MI500 series expected to launch in 2027 [3]. Profit Forecast and Valuation - The company is projected to achieve GAAP net profits of $7.715 billion in 2026, $10.970 billion in 2027, and $14.377 billion in 2028, reflecting substantial growth rates [4][9].