AMD stock has performed well over the last year, nearly doubling1 in price. This strength has been fueled by the chip company’s strategic pivot into the artificial intelligence (AI) space and its emergence as a key challenger to Nvidia’s dominance in the data center market.
Recently, AMD released its earnings for the fourth quarter of 20252 and they were better than expected, thanks to prolific growth in the company’s data center segment, where it sells GPUs designed for AI workloads. Here’s a look at some highlights from the earnings report and the earnings call, and analysts’ reactions to the numbers.
34% Revenue Growth in Q4
For Q4, AMD posted revenue of $10.3 billion, up 34% year on year, and well above the consensus forecast3 of $9.7 billion. Operating income was $2,854 million, up 41%, while earnings per share was $1.53 versus $1.32 expected.
Zooming in on the data segment, revenue here was a record $5.4 billion, up 39% year over year. This growth was fueled by high demand for AMD’s EPYC server processors and the ramp up of Instinct GPU shipments.
In terms of guidance, the company said that it expects $9.8 billion in revenue, plus or minus $300 million, for Q1 – ahead of the consensus forecast of $9.4 billion. The mid-point of that forecast represents year-on-year growth of 32%.
“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,” she added.
Earnings Call Insights
On the earnings call, Su said that eight out of the top 10 AI companies are now using AMD’s Instinct GPUs to power production workloads. She added that with the MI350 series of GPUs, the company is entering the next phase of adoption, expanding its footprint with existing partners and adding new customers. She also noted that development of the company’s next-generation MI500 series is already well underway. This series – expected to deliver a major leap in AI performance – is on track for launch in 2027.
In relation to servers, Su said that adoption of the company's fifth-generation EPYC CPUs accelerated in the fourth quarter, accounting for more than half of the total server revenue. However, fourth-generation EPYC sales were also robust. Later this year, the company is expecting to launch its next generation Venice CPU. Su noted that demand for this server CPU is very high.
Given the momentum in Instinct and EPYC, Su said that AMD is expecting “significant” top-line and bottom-line growth in 2026. And looking further out, the company sees a clear path to achieving the ambitious targets it laid out at its Financial Analyst Day in November, including growing revenue at greater than 35% CAGR over the next three to five years and growing data center revenue at more than 60% CAGR over this timeframe.
Higher Price Targets for AMD Stock
Given the high level of top and bottom-line growth generated in Q4, and the solid guidance, analysts generally remain bullish in their assessments of AMD stock. Since the earnings release, a number of firms, including Evercore ISI, BofA Securities, and Truist have increased4 their price targets for the stock. The average price target is currently $289. That is nearly 40% above1 the current stock price.
Footnotes:
1Google Finance, as of February 4, 2026
2AMD Reports Fourth Quarter and Full Year 2025 Financial Results, as of February 3, 2026
3CNBC, AMD shares drop as forecast comes up short of some expectations, as of February 3, 2026
4Investing.com, Advanced Micro Devices (AMD), as of February 4, 2026
