AMD (AMD) shares fell 5% in extended trading on Tuesday even as the Dr. Lisa Su-led company reported fourth-quarter results and guidance that were well above Wall Street’s forecast.
For the period ending Dec. 27, AMD said it earned an adjusted $1.53 per share as revenue rose xx% year-over-year to $10.27B. Data Center revenue rose 39% year-over-year to $5.4B, aided by its MI300 AI accelerator and its Instinct and EPYC processors. Analysts were anticipating $4.97B in Data Center revenue.
Revenue from the Client and Gaming segment, which houses AMD’s PC business, rose to $3.9B, up 39% year-over-year. Client revenue was $3.1B, up 34% year-over-year, while gaming revenue surged 50% to $843M, largely due to strong demand for Radeon gaming GPUs. Sales from the Embedded segment rose 3% year-over-year to $950M.
Analysts had expected the company to earn $1.32 on revenues of $9.65B for the entire quarter.
Intel (INTC) and Nvidia (NVDA) ticked down slightly in sympathy with AMD’s results and guidance.
“2025 was a defining year for AMD, with record revenue and earnings driven by strong execution and broad-based demand for our high-performance and AI platforms,” said Dr. Lisa Su, AMD chair and CEO. “We are entering 2026 with strong momentum across our business, led by accelerating adoption of our high-performance EPYC and Ryzen CPUs and the rapid scaling of our data center AI franchise.”
Looking ahead, AMD said it expects first-quarter sales to be between $9.5B and $10.1B, with the mid-point of $9.8B above the $9.39B consensus. The revenue includes roughly $100M of Instinct MI308 sales to China, the company said. Adjusted gross margin is expected to be 55%, AMD added.
The company will hold a conference call at 5 p.m. EST to discuss the results.