AMD Posts Record $10.3B Q4 Revenue but Guides Q1 at $9.8B
AMD posted record Q4 revenue of $10.3 billion driven by strong data center growth and flagged 2026 as an inflection year with over 60% annual data center expansion and MI450 AI accelerators planned for H2 volume shipments. Its Q1 revenue guidance of $9.8 billion, a 5% sequential decline, disappointed investors.
1. Record Q4 Performance
In Q4 2025, AMD achieved record revenue of $10.3 billion, led by robust data center sales that delivered over 60% year-on-year growth as enterprises and cloud providers adopted EPYC processors for AI and high-performance computing workloads.
2. 2026 Outlook and AI Strategy
CEO Lisa Su described 2026 as an inflection year, forecasting annual data center growth above 60% and emphasizing accelerating AI and CPU demand. AMD plans volume shipments of its MI450 AI accelerators in the second half of the year to capitalize on rising generative AI workloads.
3. Disappointing Q1 Guidance
AMD guided first-quarter revenue at approximately $9.8 billion, implying a 5% sequential decline and falling short of consensus estimates. The conservative outlook reflects near-term seasonal headwinds despite the long-term growth trajectory driven by AI and data center momentum.
4. Share Reaction
Following the earnings release, AMD shares jumped over 8% as retail investors on social platforms highlighted the record results. However, the muted Q1 outlook tempered further gains as investors weighed guidance risks against AMD’s long-term AI-driven growth prospects.