AMD's Q4 data center, PC revenue drives results
AMD reported strong fourth quarter earnings that handily topped expectations as its data center revenue surged 39% from a year ago.
The chipmaker reported fourth quarter earnings of $1.5 billion, or 92 cents a share, on revenue of $10.3 billion, up 34% from a year ago. Non-GAAP earnings were $1.53 billion.
Wall Street was looking for non-GAAP fourth quarter earnings of $1.32 a share on revenue of $9.67 billion.
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AMD CEO Lisa Su said the company saw "accelerating adoption of our high-performance EPYC and Ryzen CPUs and the rapid scaling of our data center AI franchise."
The company said its fourth quarter benefited from "an approximate $360 million release of previously reserved AMD Instinct™ MI308 inventory and related charges." AMD reported China revenue of $390 million in the fourth quarter due to AMD Instinct MI308.
By the numbers:
- Data center revenue in the fourth quarter was $5.4 billion, up 39% from a year ago. AMD EPYC and Instinct GPU shipments drove demand.
- PC and gaming revenue was $3.9 billion, up 37% from a year ago. Client business revenue surged 34% and gaming sales was up 50% from a year ago.
- Embedded revenue in the fourth quarter was $950 million, up 3% from a year ago.
- For 2025, AMD reported earnings of $4.33 billion, or $2.65 a share, on revenue of $34.64 billion, up 34%.
As for the outlook, AMD projected first quarter revenue of $9.8 billion, give or take $300 million. That projection includes $100 million of AMD Instinct MI308 sales to China. That guidance works out to first quarter revenue growth of 32% from a year ago.
About Larry Dignan: Dignan was most recently Celonis Media’s Editor-in-Chief, where he sat at the intersection of media and marketing. He is the former Editor-in-Chief of ZDNet and has covered the technology industry and transformation trends for more than two decades, publishing articles in CNET, Knowledge@Wharton, Wall Street Week, Interactive Week, The New York Times, and Financial Planning. He is also an Adjunct Professor at Temple University and a member of the Advisory Board for The Fox Business School's Institute of Business and Information Technology. Constellation Insights does the following: Cover the buy side and sell side of enterprise tech with news, analysis, profiles, interviews, and event coverage of vendors, as well as Constellation Research's community and…...
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