Core Viewpoint - AMD's Q4 revenue exceeded $10 billion, achieving a record high with a year-over-year growth rate of over 30%, although EPS growth has slowed down [2][3][8] Revenue and Earnings Performance - Q4 revenue reached $10.27 billion, a 34% year-over-year increase, slightly lower than the 36% growth in Q3 [8] - Adjusted EPS for Q4 was $1.53, a 40% year-over-year increase, surpassing analyst expectations by nearly 16% [8][11] - Operating profit for Q4 was $2.85 billion, a 41% year-over-year increase, exceeding analyst expectations [13] Business Segments - Data center revenue hit a record $5.4 billion in Q4, a 39% year-over-year increase, significantly up from 22% growth in Q3 [16] - Client and gaming segments contributed approximately $3.9 billion in revenue, with a year-over-year growth of 37%, although this was a slowdown from 73% growth in Q3 [21] Market and Competitive Landscape - AMD's Q1 revenue guidance is set between $9.5 billion and $10.1 billion, with a midpoint of $9.8 billion, slightly above consensus expectations [3][24] - CEO Lisa Su indicated strong demand for server CPUs and projected a 60% annual growth in data center revenue over the next three to five years [3][16] Challenges and Concerns - The market is concerned about AMD's ability to maintain growth momentum, particularly in the AI accelerator segment, as any conservative guidance may lead to negative market reactions [4][24] - AMD's sales of the Instinct MI308 chip in China amounted to approximately $390 million, with U.S. export restrictions expected to impact inventory and related costs by about $440 million in 2025 [23]

Core Viewpoint - AMD's Q4 revenue growth remains above 30% year-over-year, with EPS growth slowing but exceeding analyst expectations by nearly 16% [1][3] Revenue and Earnings Performance - Q4 revenue reached $10.27 billion, a 34% year-over-year increase, slightly lower than the 36% growth in Q3 [6] - Adjusted EPS for Q4 was $1.53, a 40% year-over-year increase, surpassing analyst expectations of $1.32 by nearly 16% [7][8] - Operating profit for Q4 was $2.85 billion, a 41% year-over-year increase, exceeding analyst expectations of $2.47 billion by 15.4% [9] Business Segments - Data center revenue hit a record $5.4 billion in Q4, a 39% year-over-year increase, accelerating from 22% growth in Q3 [12] - Client and gaming business contributed approximately $3.9 billion in revenue, with a 37% year-over-year increase, slowing from 73% growth in Q3 [16] Guidance and Market Reaction - Q1 revenue guidance is set at $9.5 billion to $10.1 billion, with a midpoint of $9.8 billion, slightly above analyst consensus of $9.39 billion but below some optimistic forecasts exceeding $10 billion [3][5] - Following the earnings report, AMD's stock price fell, reflecting investor disappointment over the revenue guidance not meeting high expectations [3][5] Cost and Investment Considerations - AMD's adjusted gross margin guidance is approximately 55%, slightly above market expectations of 54.5% [5] - R&D expenses for Q4 were $2.33 billion, exceeding analyst expectations of $2.16 billion, indicating continued investment in next-generation CPU/GPU and AI platforms [9][10] Export Restrictions Impact - Sales of the MI308 chip in China amounted to approximately $390 million in Q4, with U.S. export restrictions expected to impact around $440 million in inventory and related costs by 2025 [17]

As of January 29, 2026, Advanced Micro Devices (AMD) stock has outperformed most of its peers over the last year. Nevertheless, how does it really stack up against competitors that are rapidly growing in the flourishing AI and data-center market? A detailed review shows solid revenue growth and positive free cash flow; however, profitability margins, particularly operating margins, are lagging behind industry frontrunners such as NVIDIA (NVDA) and Broadcom (AVGO).Lisa Su, chairwoman and CEO of Advanced Micr ...