AMD Data Center Revenue Rises 32% to $16.6B, MI450 and 6 GW Meta Deal Propel Re-rating
AMD’s Data Center segment grew revenue 32% to $16.6 billion in 2025, contributing to a combined $31.2 billion with Client and Gaming divisions. After a $440 million export-charge adjustment, AMD trades at ~40× fiscal 2026 earnings, driven by MI450’s HBM4-based 432 GB architecture and a 6 GW Meta agreement.
1. Valuation Re-rating
AMD’s April breakout reflects the recognition that its 100× trailing P/E was inflated by 2025 inventory corrections and a $440 million MI308 export-charge, resulting in a forward P/E of about 40× on fiscal 2026 earnings.
2. Data Center Momentum
The Data Center business achieved $16.6 billion in 2025 revenue, up 32% year-over-year, and combined with Client and Gaming segments delivered $31.2 billion, underscoring AMD’s expansion beyond PC components.
3. MI450 AI Architecture
The upcoming MI450 GPU leverages HBM4 memory for 432 GB capacity and 20 TB/s bandwidth, enabling models 50% larger to run entirely in memory and targeting high-density Agentic AI inference.
4. Strategic Meta Pact and Expansion
A multi-year 6 GW agreement with Meta includes a performance-based warrant for up to 160 million shares, aligning AMD with a top AI infrastructure buyer, while Oracle and OpenAI deployments are slated for Q3 2026.