Lisa Su, chair and chief executive officer of Advanced Micro Devices Inc. (AMD), during a Bloomberg Television interview in San Francisco, California, US, on Monday, Oct. 6, 2025.
David Paul Morris | Bloomberg | Getty Images
Advanced Micro Devices reported fourth-quarter earnings that topped expectations, but the company’s first-quarter forecast fell short of what some analysts were expecting amid an AI spending boom.
The stock fell on Tuesday more than 6% in extended trading.
Here’s how the chipmaker did versus LSEG consensus estimates for the quarter ended Dec. :
- EPS: $1.53 vs. $1.32 estimated
- Revenue: $10.27 billion versus $9.67 billion estimated
For the first quarter, AMD said it expects $9.8 billion in revenue, plus or minus $300 million, versus expectations of $9.38 billion. Some analysts, however, were expecting AMD to provide stronger guidance as customers continue to ramp up spending for the chips necessary to power AI models.
Net income climbed to $1.51 billion, or 92 cents per share, versus $482 million, or 29 cents per share in the year-ago period. AMD’s overall revenue was up 34% on an annual basis.
AMD is one of two makers of big graphics processors for artificial intelligence, although it only has a small portion of the market, which is currently dominated by Nvidia.
The chipmaker has recently announced some big customers, including OpenAI, the maker of ChatGPT, and Oracle. AMD plans to ship a new integrated server-scale AI system called Helios later this year. Shares have more than doubled over the past year.
Those sales are reported in the company’s data center segment, which had $5.4 billion in sales in the quarter, up 39% on an annual basis. The company said growth was driven both by the company’s central processors as well as its AI GPUs.
AMD’s client and gaming segment rose 37% year-over-year to $3.9 billion. The company said it was driven by demand for its Ryzen processors for laptops and PCs, which have gained market share versus Intel.
The company’s embedded segment grew slower, rising 3% on a year-over-year basis to $950 million.
AMD has faced issues over whether it would be able to ship its AI chips to China because of U.S. export controls. The company on Tuesday said that it recorded $390 million in China sales of its Instinct MI308 chips during the fourth quarter.
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