Key Takeaways AMD inks 6-GW MI450 deal with Meta, expanding AI and EPYC CPU partnership. Helios wins backing from OpenAI, HPE, Lenovo and OCI for AI superclusters. AMD targets $1T data center TAM by 2030, forecasting 80% AI revenue CAGR. Advanced Micro Devices’ (AMD) data center AI business has been driven by strong demand for Instinct MI350 series and MI300 series GPUs. Prospects are expected to accelerate with the upcoming MI450 series, which forms the crux of the 6-gigawatt (GWs) deal inked between AMD a ...

Advanced Micro Devices Inc. (NASDAQ:AMD) has seen its financial health and operational efficiency ratings skyrocket following a landmark fourth-quarter performance.AMD’s Quality Score Rises After Q4 ResultsAccording to the latest Benzinga Edge Stock Rankings, AMD's Quality score—a composite metric evaluating a company’s historical profitability and fundamental strength relative to its peers—surged from 82.23 to 92.71 week-on-week.This jump places the chipmaker in the top percentile of all ranked stocks, dri ...

Advanced Micro Devices Inc. (NASDAQ:AMD) has seen its financial health and operational efficiency ratings skyrocket following a landmark fourth-quarter performance.AMD’s Quality Score Rises After Q4 ResultsAccording to the latest Benzinga Edge Stock Rankings, AMD's Quality score—a composite metric evaluating a company’s historical profitability and fundamental strength relative to its peers—surged from 82.23 to 92.71 week-on-week.This jump places the chipmaker in the top percentile of all ranked stocks, dri ...

Core Insights - Advanced Micro Devices (AMD) reported Q4 2025 non-GAAP earnings of $1.53 per share, exceeding estimates by 16.18%, with a year-over-year increase of 40.4% and a sequential increase of 27.5% [1] - Revenues reached $10.27 billion, surpassing estimates by 6.24%, and increased 34.1% year-over-year and 11.1% sequentially [1] Revenue Breakdown - Data Center revenues grew 39.4% year-over-year to $5.38 billion, making up 52.4% of total revenues, with a sequential increase of 23.9% driven by demand for EPYC processors and MI350 GPUs [2] - The Client segment saw revenues rise 33.9% year-over-year to $3.09 billion, accounting for 30.2% of total revenues, with a sequential increase of 12.6% due to strong demand for Ryzen processors [4] - Gaming segment revenues surged 49.7% year-over-year to $843 million, representing 8.2% of total revenues, although sequentially they declined 35.1% [5] - Embedded segment revenues were $950 million, up 2.9% year-over-year and 10.9% sequentially, accounting for 9.3% of total revenues [6] Margin and Operating Income - Non-GAAP gross margin expanded 290 basis points year-over-year to 57%, significantly better than the previous quarter's 54% [7] - Adjusted EBITDA increased 38.7% year-over-year to $3.04 billion, with a margin expansion of 100 basis points year-over-year and 340 basis points sequentially [7] - Non-GAAP operating margin expanded 130 basis points year-over-year to 27.8%, higher than the previous quarter's 24.2% [9] - Data Center operating income was $1.75 billion, up from $1.15 billion year-over-year, with a sequential increase of 63.1% and a margin expansion of 540 basis points [10] Cash Flow and Shareholder Returns - As of December 27, 2025, AMD had cash and short-term investments of $10.55 billion, up from $7.24 billion in the previous quarter [12] - Operating cash flow was $2.30 billion in Q4 2025, compared to $1.79 billion in Q3 2025 [12] - Free cash flow was $2.08 billion in Q4 2025, with a free cash flow margin of 20%, up 300 basis points sequentially [13] - AMD returned $1.3 billion to shareholders through its share repurchase program, with $9.4 billion remaining under its current authorization [13] Guidance - AMD expects Q1 2026 revenues of approximately $9.8 billion, indicating strong year-over-year growth of about 32% but a sequential decline of approximately 5% [14]

Shares of Advanced Micro Devices (AMD) have rallied significantly, surging 111% over the past year. That momentum has carried into 2026 as well, with the stock already up more than 16% year-to-date. The strength in AMD stock reflects its growing share in the fast-growing data center market, a strong artificial intelligence (AI) product roadmap, and key partnerships with major industry leaders. Collaborations with companies such as OpenAI and Oracle (ORCL) have strengthened AMD’s position, helping boost con ...

Core Insights - Advanced Micro Devices (AMD) shares have increased by 70.3% over the past year, significantly outperforming the Zacks Computer and Technology sector's 24.7% return and the Zacks Computer – Integrated Systems industry's 68.8% appreciation [1] - The growth is driven by strong demand for EPYC processors and Instinct MI350 and MI300 series GPUs, with expectations for double-digit growth in Data Center revenues in Q4 2025 [1][9] Data Center Market Potential - AMD anticipates the data center total addressable market to reach $1 trillion by 2030, indicating a compound annual growth rate (CAGR) of over 40% from an estimated $200 billion in 2025 [2] - Data center AI revenues are projected to grow at a CAGR of over 80% in the next 3-5 years, supported by demand for Instinct GPUs and a growing customer base [2] Product Adoption and Partnerships - The adoption of fifth-generation EPYC processors is strong, with hyperscalers launching over 160 EPYC-powered instances in Q3 2025, marking a 50% year-over-year increase in public EPYC cloud instances [4] - New partnerships and product launches, such as Oracle's MI355X instances and the adoption of MI300 series by companies like IBM and OpenAI, are expected to drive further growth [5][6] Financial Performance and Guidance - AMD expects Q4 2025 revenues to be around $9.6 billion, reflecting approximately 25% year-over-year growth and 4% sequential growth [7] - The Zacks Consensus Estimate for Q4 2025 revenues is $9.64 billion, indicating a 25.9% increase from the previous year [8] Competitive Landscape - AMD faces significant competition from NVIDIA, Broadcom, and Intel, with NVIDIA's AI and high-performance computing growth posing a particular challenge [10][11] - Over the past year, AMD shares have underperformed compared to Broadcom and Intel, which returned 121.7% and 101.3%, respectively, while AMD outperformed NVIDIA's 32.5% return [12] Valuation Concerns - AMD's stock is currently considered overvalued, with a forward 12-month price/sales ratio of 8.49X compared to the sector's 6.79X, indicating a stretched valuation [16] - The company's near-term prospects are viewed as dull due to competitive pressures and valuation concerns [19]

Core Insights - Qualcomm Incorporated (QCOM) is experiencing strong revenue growth, reporting $11.27 billion in revenues, an increase from $10.24 billion year-over-year [1][8] - The company's Automotive revenues reached a record high of $1.05 billion, up 17%, driven by the adoption of its Snapdragon Digital Chassis platform in new vehicle launches [1][8] - Qualcomm's IoT revenues grew by 7% to $1.81 billion, supported by demand for the Snapdragon AR1 chipset for AI smart glasses [2][8] - Handset revenues increased by 14% to $6.96 billion, bolstered by strong performance in premium Android handsets [2][8] - The company is projected to generate $45.29 billion in revenues, reflecting a 2.6% year-over-year growth [4] Competitive Landscape - Qualcomm faces competition from Intel Corporation (INTC) and Advanced Micro Devices (AMD) [5] - Intel reported revenues of $13.65 billion, up 2.79% year-over-year, with growth in AI PCs and the Intel 18A process node [5] - AMD's revenues reached $9.25 billion, a 35.6% increase year-over-year, driven by demand for EPYC processors and Instinct MI350 series GPUs [6] Financial Performance and Valuation - Qualcomm shares have increased by 3.4% over the past year, compared to the industry's growth of 77% [7] - The company's shares are currently trading at a price/earnings ratio of 13.74, lower than the industry average of 39.75 [9] - Earnings estimates for 2025 and 2026 have improved over the past 60 days, indicating positive sentiment [11]

Core Insights - Advanced Micro Devices (AMD) is experiencing strong demand for its Instinct MI350 and MI300 GPU series, which is driving growth in its data center AI business [1][9] - Oracle's launch of MI355X instances and OpenAI's commitment to build 6 gigawatts (GW) of AI computing capacity using AMD technology are expected to further enhance AMD's growth prospects [2][9] - AMD anticipates its data center total addressable market to reach $1 trillion by 2030, with a compound annual growth rate (CAGR) of over 40% from approximately $200 billion in 2025 [3] Data Center AI Business - The MI350 series is gaining traction among neocloud providers such as Crusoe, DigitalOcean, TensorWave, and Vultr, while the MI300 series is rapidly adopted by developers including IBM and Zyphra [2] - AMD expects its data center AI revenues to grow at a CAGR of over 80% in the next 3-5 years, driven by demand for its Instinct GPUs and expanding clientele [3] Financial Performance and Projections - AMD forecasts double-digit growth in Data Center revenues both year-over-year and sequentially in Q4 2025, supported by a strong product portfolio [4] - The Zacks Consensus Estimate for AMD's Q4 2025 earnings is $1.31 per share, indicating a 20.18% growth compared to the previous year [12] Competitive Landscape - AMD faces tough competition from NVIDIA and Broadcom in the data center space, with NVIDIA's products being widely adopted for AI computing [5] - Broadcom is experiencing strong demand for its networking products and custom AI accelerators, with XPUs accounting for 65% of its AI revenues in Q3 2025 [6] Stock Performance and Valuation - AMD shares have increased by 53.2% over the past 12 months, outperforming the broader Zacks Computer and Technology sector, which returned 27.6% [7] - AMD's stock is considered overvalued, with a forward 12-month price/sales ratio of 8.38X compared to the sector's 6.73X, resulting in a Value Score of F [14]

Financial Data and Key Metrics Changes - The company reported record revenue of $9.2 billion, a 36% year-over-year increase, and a 20% sequential increase [4][19] - Net income rose by 31%, and free cash flow more than tripled [4] - Gross margin was 54%, up 40 basis points year-over-year [20] - Operating expenses increased by 42% year-over-year to approximately $2.8 billion [20] - Diluted earnings per share were $1.20, a 30% increase from $0.92 a year ago [20] Business Segment Data and Key Metrics Changes - Data center segment revenue reached a record $4.3 billion, up 22% year-over-year and 34% sequentially [20] - Client and gaming segment revenue increased by 73% year-over-year to $4 billion, with gaming revenue rising 181% year-over-year to $1.3 billion [15][21] - Embedded segment revenue decreased by 8% year-over-year to $857 million but increased by 4% sequentially [17][22] Market Data and Key Metrics Changes - Adoption of EPYC processors in the cloud more than tripled year-over-year, with over 1,350 public EPYC cloud instances available globally, a nearly 50% increase from a year ago [5][6] - The company closed large new wins with Fortune 500 companies across various sectors, expanding its footprint [7] Company Strategy and Development Direction - The company is on track to launch next-generation 2-nanometer Venice EPYC processors in 2026, with strong customer engagement [7][11] - The data center AI business is entering a new growth phase, with significant momentum building ahead of the launch of MI400 series accelerators and Helios Rack Scale solutions in 2026 [10][12] - A multi-year agreement with OpenAI to deploy 6 gigawatts of Instinct GPUs was announced, establishing the company as a core compute provider for OpenAI [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for cloud and enterprise solutions, anticipating continued growth in the data center segment [6][34] - The company expects fourth-quarter revenue to be approximately $9.6 billion, representing about 25% year-over-year growth [24] - Management highlighted the unprecedented growth opportunities driven by the increasing demand for powerful and efficient computing [18] Other Important Information - The company completed the sale of the ZT Systems manufacturing business to Sanmina, entering a strategic partnership for Helios manufacturing [11][22] - The company generated $1.8 billion in cash from operating activities and a record free cash flow of $1.5 billion during the quarter [23] Q&A Session Summary Question: CPU/GPU mix in Q3 and Q4 - Management indicated strong performance in both server and data center AI businesses, with expectations for continued demand into 2026 [26][27] Question: OpenAI's engagement and market visibility - Management expressed excitement about the relationship with OpenAI, emphasizing planning for power and supply chain availability [28][29] Question: Discrete sales versus system sales for Helios - There is significant customer interest in the Helios rack scale solutions, with expectations for early customers to focus on these solutions [30][31] Question: Supply constraints and CPU demand sustainability - Management noted a positive demand environment for CPUs, driven by AI workloads, and indicated readiness to support growth [34][35] Question: ROCm software stack development - Management highlighted progress with ROCm 7 and ongoing investments to enhance the developer experience [36][49] Question: Differentiation in the multi-gigawatt market - Management emphasized the growing demand for AI compute and the company's strategy to engage multiple customers at scale [54]

Core Insights - Advanced Micro Devices (AMD) stock experienced a nearly 50% surge from July 17, 2025, to October 15, 2025, driven by improving earnings, a recovering CPU market, and increased interest in GPUs for AI applications [1] - The company secured a significant deal with OpenAI to supply tens of thousands of GPU chips for 6 gigawatts of computing capacity over the next five years [1] Financial Performance - AMD reported record second-quarter 2025 revenue of $7.7 billion, a 32% year-over-year increase, primarily due to strong sales of EPYC and Ryzen processors [6] - The company fell short of EPS estimates, posting $0.48 against the expected $0.54, partly due to an $800 million charge related to U.S. export controls on MI308 AI chips to China [6] - AMD provided an optimistic revenue forecast for Q3 2025 of approximately $8.7 billion, indicating a healthy 28% year-over-year growth [6] Market Developments - Investor confidence was bolstered by key AI chip agreements, including a multi-year partnership with OpenAI and Oracle Cloud Infrastructure's plan to roll out 50,000 AMD Instinct MI450 Series AI chips beginning Q3 2026 [6][7] - Analysts upgraded their ratings for AMD, reflecting positive sentiment driven by the company's competitive AI product portfolio and market share gains in server CPUs, achieving an all-time high of 39% in Q2 2025 [11] Executive Actions - Insider stock sales by senior executives, including CEO Lisa T. Su, raised concerns among investors regarding ownership reduction [11]