Getty Images Momentum for Advanced Micro Devices, Inc.'s ( AMD ) core segment, Data Centers, is not showing any signs of slowing down: according to the chipmaker's fourth-quarter earnings scorecard, released on Tuesday, the company benefited from strong growth momentum in the Data Center segment, which reached an all-time revenue record. AMD also saw improvement in this free cash flow, which in th...
Getty Images Momentum for Advanced Micro Devices, Inc.'s ( AMD ) core segment, Data Centers, is not showing any signs of slowing down: according to the chipmaker's fourth-quarter earnings scorecard, released on Tuesday, the company benefited from strong growth momentum in the Data Center segment, which reached an all-time revenue record. AMD also saw improvement in this free cash flow, which in the long term likely creates a stock buyback catalyst. AMD is ramping up Instinct Series MI350 AI accelerator shipments, which allowed the chipmaker to grow its gross margins 3 PP to 57% and present a robust outlook for Q1'26. However, shares have had an enormous run in the last year and outperformed NVIDIA ( NVDA ) by a very wide margin, and recent momentum has fizzled. Since I see shares of AMD as fully priced, I maintain a hold rating following the Q4'25 earnings report. Data by YCharts Previous rating I rated shares of AMD a hold in October -- Correction Risks Are Growing -- in part because the chipmaker signed a massive deal for the supply of AI accelerators with OpenAI ( OPENAI ) which I felt was fully priced into the company's valuation. AMD indeed reported accelerating growth in the core Data Center segment and the Data Center specialist reported an expansion in its gross and free cash flow margins. However, I believe the market now fully understands AMD's product ramp, leaving little room for more upside in the short term. AMD achieves increasingly profitable growth The chipmaker's AI accelerators are in high demand by hyperscalers, which led AMD to report record results in Q4'25: AMD published $1.53 per-share in earnings, on a normalized basis, which beat the consensus estimate by $0.21 per-share. Revenues beat expectations by a solid ~$600M, with the top line coming in at a record of $10.3B. Seeking Alpha AMD excelled again in the Data Center segment which is where AI-optimized chips like the Instinct Series MI350 are in high demand by hyperscalers. AMD generated t...
Getty Images Momentum for Advanced Micro Devices, Inc.'s ( AMD ) core segment, Data Centers, is not showing any signs of slowing down: according to the chipmaker's fourth-quarter earnings scorecard, released on Tuesday, the company benefited from strong growth momentum in the Data Center segment, which reached an all-time revenue record. AMD also saw improvement in this free cash flow, which in th...
Getty Images Momentum for Advanced Micro Devices, Inc.'s ( AMD ) core segment, Data Centers, is not showing any signs of slowing down: according to the chipmaker's fourth-quarter earnings scorecard, released on Tuesday, the company benefited from strong growth momentum in the Data Center segment, which reached an all-time revenue record. AMD also saw improvement in this free cash flow, which in the long term likely creates a stock buyback catalyst. AMD is ramping up Instinct Series MI350 AI accelerator shipments, which allowed the chipmaker to grow its gross margins 3 PP to 57% and present a robust outlook for Q1'26. However, shares have had an enormous run in the last year and outperformed NVIDIA ( NVDA ) by a very wide margin, and recent momentum has fizzled. Since I see shares of AMD as fully priced, I maintain a hold rating following the Q4'25 earnings report. Data by YCharts Previous rating I rated shares of AMD a hold in October -- Correction Risks Are Growing -- in part because the chipmaker signed a massive deal for the supply of AI accelerators with OpenAI ( OPENAI ) which I felt was fully priced into the company's valuation. AMD indeed reported accelerating growth in the core Data Center segment and the Data Center specialist reported an expansion in its gross and free cash flow margins. However, I believe the market now fully understands AMD's product ramp, leaving little room for more upside in the short term. AMD achieves increasingly profitable growth The chipmaker's AI accelerators are in high demand by hyperscalers, which led AMD to report record results in Q4'25: AMD published $1.53 per-share in earnings, on a normalized basis, which beat the consensus estimate by $0.21 per-share. Revenues beat expectations by a solid ~$600M, with the top line coming in at a record of $10.3B. Seeking Alpha AMD excelled again in the Data Center segment which is where AI-optimized chips like the Instinct Series MI350 are in high demand by hyperscalers. AMD generated t...