TLDR

AMD posted Q4 earnings of $1.53 per share, crushing analyst estimates of $1.32, while revenue reached $10.3 billion versus $9.67 billion expected.
Stock fell 8% after hours as Q1 guidance of $9.8 billion missed some analyst expectations despite exceeding consensus of $9.42 billion.
Data center revenue jumped 39% to $5.4 billion, fueled by AI GPU and CPU demand from hyperscalers like OpenAI and Oracle.
China revenue expected to plunge from $390 million in Q4 to $100 million in Q1 due to U.S. export restrictions.
Shares had climbed 13% year-to-date before earnings, possibly triggering profit-taking despite the strong results.

AMD handed investors a textbook earnings beat Tuesday. Wall Street sold anyway. The stock dropped 8% in extended trading despite crushing expectations on both the top and bottom lines.

Fourth-quarter adjusted earnings hit $1.53 per share. Analysts wanted $1.32. Revenue came in at $10.3 billion against estimates of $9.67 billion. Net income more than tripled to $1.51 billion from $482 million a year earlier.

The issue wasn’t the quarter. It was the outlook. AMD guided for Q1 revenue of $9.8 billion at the midpoint, beating the $9.42 billion consensus. But some analysts wanted more given the AI spending frenzy.

Advanced Micro Devices, Inc., AMD

CEO Lisa Su highlighted momentum across the business. “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 said.

The stock had already run up 13% this year before earnings. That likely contributed to the after-hours selloff as traders booked profits.

AI Chips Drive Data Center Surge

The data center business stole the show. Segment revenue hit $5.4 billion, up 39% year over year. Both AI graphics processors and traditional CPUs contributed to growth.

Su emphasized the AI boom is lifting all boats. Server CPU demand is exploding as hyperscalers expand infrastructure. Enterprises are upgrading data centers to handle new AI workloads.

AMD recently secured OpenAI and Oracle as major customers. The company plans to ship its Helios server-scale AI system later this year. Su said AMD is negotiating additional deals for Helios and the MI450 chip. “The ramp is on schedule to start in the second half of the year, and MI450 is doing great,” she noted.

PC Business Gains Share

The client and gaming segment posted 37% growth to $3.9 billion. Ryzen processors for laptops and desktops drove the increase. AMD continues grabbing market share from Intel in the PC processor space.

The embedded segment lagged with just 3% growth to $950 million.

Export Controls Hit China Sales

U.S. restrictions are hammering China revenue. AMD sold $390 million worth of MI308 chips to China in Q4. The company expects just $100 million in China sales for Q1.

Export controls on advanced AI chips limit AMD’s access to the Chinese market. The projected 74% quarter-over-quarter drop in China revenue reflects the impact of these restrictions.

HSBC analyst Frank Lee raised his price target to $335 from $300 while maintaining a Buy rating. He believes agentic AI will boost server CPU demand, with AMD positioned to benefit.

The post AMD Stock: Investors Dump Shares Despite Earnings Beat – Here’s Why appeared first on Blockonomi.

---

Filed under: Bitcoin - @ February 4, 2026 12:27 pm