AMD beats Q4 revenue, profit expectations

Overview

• Semiconductor firm's Q4 revenue rose 34% yr/yr, beating analysts' expectations

• Adjusted EPS beat analyst expectations

• Data center segment revenue reached a record $5.4 bln, driven by EPYC processors

Outlook

• AMD expects Q1 2026 revenue around $9.8 bln, plus or minus $300 mln

• Company anticipates Q1 2026 non-GAAP gross margin of approximately 55%

Result Drivers

• DATA CENTER DEMAND - Record revenue in data center segment driven by strong demand for EPYC processors and increased AMD Instinct GPU shipments

• CLIENT AND GAMING GROWTH - Client and gaming segment revenue rose due to strong demand for Ryzen processors and Radeon GPUs

• INVENTORY RELEASE IMPACT - Q4 benefited from a $360 mln release of previously reserved inventory related to U.S. export controls

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 43 "strong buy" or "buy", 12 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the semiconductors peer group is "buy"

• Wall Street's median 12-month price target for Advanced Micro Devices Inc is $283.00, about 14.9% above its February 2 closing price of $246.27

• The stock recently traded at 37 times the next 12-month earnings vs. a P/E of 43 three months ago

Press Release: ID:nGNX1pQcv0

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.