Advanced Micro Devices Chairman and CEO Lisa Su during an interview on Bloomberg TV in San Francisco, October 6, 2025.
David Paul Morris | Bloomberg | Getty Images
advanced micro device announced better-than-expected fourth-quarter profits, but the company’s first-quarter forecast was lower than some analysts expected amid an AI spending boom.
Shares fell as much as 8% in extended trading Tuesday.
Here are the chipmaker’s earnings and LSEG’s consensus forecast for the quarter ended December:
EPS: $1.53 vs. $1.32 expected Revenue: $10.27 billion vs. $9.67 billion expected
AMD said it expects first-quarter sales to be $9.8 billion, plus or minus $300 million, compared to the expected $9.38 billion. But some analysts had expected AMD to provide stronger guidance as customers continue to increase spending on chips needed to power AI models.
Net income increased to $1.51 billion, or 92 cents per share, from $482 million, or 29 cents per share, in the year-ago period. AMD’s overall revenue increased 34% on an annual basis.
AMD is one of two companies that make large graphics processors for artificial intelligence, but it only has a small portion of the market currently dominated by Nvidia. The stock price has more than doubled in the past year.
Chip makers have recently started using ChatGPT maker OpenAI and oracle. AMD plans to ship a new integrated server-scale AI system called Helios later this year. AMD CEO Lisa Su said on an earnings call that the company is in “active discussions” to sell additional Helios or MI450 chips.
“MI450 is progressing well, starting as planned later this year,” Mr Hsu said.
These sales were reported in the company’s data center division, which had sales of $5.4 billion in the quarter, an increase of 39% on an annual basis. The company said growth was driven by both its central processors and AI GPUs.
Su said on the earnings call that the artificial intelligence boom is boosting sales of the company’s central processors, not just GPUs.
“Server CPU demand is still very strong,” Su says. “Hyperscalers are expanding their infrastructure to meet the growing demand for cloud services in AI, while enterprises are modernizing their data centers to ensure they have the right compute needed to enable new AI workflows.”
AMD’s client and gaming division grew 37% year over year to $3.9 billion. The company said demand for Ryzen processors for laptops and PCs is driving this growth, and these processors are gaining market share. intel.
Growth in the company’s embedded division slowed, increasing 3% year-over-year to $950 million.
AMD is facing issues over whether it can ship its AI chips to China due to U.S. export restrictions. The company announced Tuesday that it recorded $390 million in China sales for its Instinct MI308 chip in the fourth quarter and expects sales in China to reach $100 million this quarter.
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