AMD Data Center Revenue Hits $5.4B, Q1 Guidance at $9.8B
AVGO•AMD stock has gained 55% year-to-date and 3.5x over the past 12 months as data center revenue reached a record $5.4 billion last quarter, up 39% year-over-year. The company set first-quarter revenue guidance of $9.8 billion and forecasts 60% annual data center revenue growth over a multi-year period.
1. Record Data Center Revenue
AMD’s data center segment achieved a record $5.4 billion in revenue last quarter, marking a 39% year-over-year increase. This performance has propelled the stock up 55% year-to-date and 3.5x over the past 12 months.
2. Strong Q1 Guidance and Growth Forecast
The company issued first-quarter revenue guidance of $9.8 billion, reflecting continued strength in cloud and enterprise demand. Management projects data center revenue to grow 60% annually over a multi-year horizon.
3. Competitive GPU and CPU Offerings
AMD’s Instinct MI325X GPU, with up to 432 GB of HBM4 memory, challenges Nvidia’s latest architecture by enabling inference of massive models on a single chip. Hyperscalers such as Meta and Microsoft are adopting AMD hardware to lower per-token inference costs and negotiate pricing leverage.
4. Valuation and Potential Risks
Shares trade at approximately 130x trailing earnings and 67x on FY 2026 consensus, reflecting premium AI-driven growth. Analysts forecast 35% revenue growth this year and 45% next year, but elevated multiples and margin pressures warrant close monitoring.
