Advanced Micro Devices (AMD) shares dipped 5% in after hours trading, despite posting a 34% year-over-year revenue increase for the December quarter to US$10.3 billion, driven by record demand for its data centre and AI platforms.
That surpassed analyst projections of $9.67 billion - as did its earnings per share (EPS) of $1.53, exceeding an expected $1.32.
Revenue growth was led by AMD’s Data Centre segment, which totalled $5.4 billion, up by 39% year-over-year.
Client revenue came in at $3.1 billion, up 34% year-over-year, driven by strong demand for Ryzen processors, yet was partially offset by Embedded sales, which saw only modest growth.
AMD CEO Lisa Su said the company had delivered a "defining year" for 2025, with record revenue and earnings driven by strong execution.
"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 centre AI franchise.
"Our record fourth quarter and full-year results demonstrate AMD's ability to deliver profitable growth at scale."
AMD’s Q1 2026 outlook sees expected revenue to come in at $9.8 billion, +/- $300 million - sitting comfortably above the consensus estimate of $9.4 billion.
Despite the beat, AMD shares were down roughly 5% in after-hours trading, swapping for roughly $225. The company maintains a market capitalisation well in excess of $350 billion.
Analysts suggest the muted reaction reflects high expectations already priced into the stock, which has more than doubled over the last 12 months amid the broader AI sector rally.
