AMD Q4 Earnings Beat Expectations, Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy AMD?
Source: CNBC
- Earnings Beat: AMD reported Q4 earnings per share of $1.53, exceeding the expected $1.32, with revenue hitting $10.27 billion, significantly above the $9.67 billion forecast, reflecting strong performance amid rising AI demand.
- Q1 Guidance Disappointment: Although AMD expects Q1 revenue of $9.8 billion, surpassing analyst expectations of $9.38 billion, the market was disappointed by the lack of stronger guidance, leading to a more than 6% drop in after-hours trading.
- Data Center Sales Surge: The data center segment achieved $5.4 billion in sales for Q4, a 39% year-over-year increase, driven by robust demand for both central processors and AI GPUs, indicating the company's potential in the AI market.
- China Market Sales: AMD recorded $390 million in sales of its Instinct MI308 chips in China during Q4 and expects $100 million in revenue for the current quarter, showcasing growth potential in the Chinese market despite U.S. export controls.
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Analyst Views on AMD
Wall Street analysts forecast AMD stock price to rise
33 Analyst Rating
25 Buy
8 Hold
0 Sell
Strong Buy
Current: 210.210
Low
210.00
Averages
289.13
High
377.00
Current: 210.210
Low
210.00
Averages
289.13
High
377.00
About AMD
Advanced Micro Devices, Inc. is a global semiconductor company. The Company is focused on high-performance computing and artificial intelligence (AI). Its segments include Data Center, Client and Gaming, and Embedded. Data Center segment includes AI accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), and Adaptive system-on-Chip (SoC) products for data centers. Client and Gaming segment includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services. Embedded segment includes embedded CPUs, APUs, FPGAs, system on modules (SOMs), and Adaptive SoC products. It markets and sells its products under the AMD trademark. Its products include AMD EPYC, AMD Ryzen, AMD Ryzen PRO, Virtex UltraScale+, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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