Advanced Micro Devices NASDAQ: AMD reported record fourth-quarter and full-year 2025 results, citing broad-based demand across data center, client PCs, gaming, and embedded markets and an accelerating ramp in its data center AI business. Management highlighted share gains in server and PC processors, expanding adoption of Instinct GPUs and the ROCm software stack, and a growing pipeline of rack-scale AI system deployments tied to its upcoming MI400/MI450 “Helios” platform roadmap.
Record Q4 and full-year results
CEO Lisa Su said 2025 was “a defining year” for AMD, with record revenue, net income, and free cash flow. For the fourth quarter, AMD reported revenue of $10.3 billion (up 34% year over year), net income of $2.5 billion (up 42%), and free cash flow of $2.1 billion, which the company said nearly doubled from a year earlier.
For the full year, AMD posted revenue of $34.6 billion, up 34% year over year. CFO Jean Hu said the company delivered gross margin of 52% for 2025 and record non-GAAP EPS of $4.17, up 26%, while continuing to invest heavily in AI and data center initiatives.
In the fourth quarter, Hu said AMD’s results included approximately $390 million in revenue from MI308 sales to China that was not included in prior guidance. Fourth-quarter gross margin was 57%, benefiting from the release of $360 million in previously written-down MI308 inventory reserves. Excluding both the reserve release and the MI308 China revenue, Hu said gross margin would have been approximately 55%, up 80 basis points year over year due to favorable product mix.
Data center growth led by EPYC and Instinct
AMD’s data center segment revenue rose 39% year over year in the fourth quarter to a record $5.4 billion. Hu said revenue was up 24% sequentially, driven by strong EPYC demand and the continued ramp of MI350 products. Data center segment operating income was $1.8 billion, or 33% of revenue.
Su said adoption of 5th-gen EPYC “Turin” accelerated, accounting for more than half of total server revenue in the quarter, while 4th-gen EPYC sales also remained robust. In cloud, she pointed to strong hyperscaler demand, noting that AWS, Google, and others launched more than 230 new AMD instances in the quarter and that hyperscalers launched more than 500 AMD-based instances in 2025. Su said the number of EPYC cloud instances grew more than 50% year over year to nearly 1,600.
On the enterprise side, Su said the number of large businesses deploying EPYC on-premises more than doubled in 2025, supported by expanded platform availability, software enablement, and go-to-market programs. She added that leading server providers now offer more than 3,000 solutions powered by fourth- and fifth-gen EPYC CPUs.
Looking ahead, Su said customer pull for next-generation EPYC “Venice” is “very high,” with engagements underway for large-scale cloud deployments and broader OEM availability when Venice launches later in 2026.
AI roadmap: MI350 ramp, MI450/Helios inflection
AMD said it delivered record Instinct GPU revenue in the fourth quarter, led by the ramp of MI350 series shipments, with “some revenue” from MI308 sales to China. Su said Instinct adoption broadened, with 8 of the top 10 AI companies using Instinct to power production workloads. She also highlighted ROCm ecosystem progress, including “day zero” model support and upstream integration of AMD GPUs into vLLM, a widely used inference engine.
On product plans, Su said customer engagements for the MI400 series and Helios platform are expanding, and AMD is in active discussions on multi-year, at-scale deployments beginning with Helios and MI450 later in 2026. She described a broader portfolio approach spanning cloud, HPC, sovereign AI, and enterprise deployments, including multiple MI400-series variants and rack-scale systems.
Su also discussed AMD’s multi-generation partnership with OpenAI to deploy 6 GW of Instinct GPUs, saying the MI450 development is “on track” for a second-half 2026 launch and production. In Q&A, she said MI450 revenue is expected to begin in the third quarter and ramp to “significant volume” in the fourth quarter as the company enters 2027. She added that while multiple variants exist, the “vast majority” of MI450 in 2026 will be rack-scale solutions, and that AMD will recognize revenue when it ships to the rack builder.
Client strength, gaming cycle pressure, embedded stabilization
AMD’s client and gaming segment revenue increased 37% year over year in the fourth quarter to $3.9 billion. Within that, client revenue rose 34% to a record $3.1 billion on strong Ryzen desktop and mobile demand. Su said desktop CPU sales set a record for the fourth consecutive quarter and highlighted accelerating commercial momentum, with sell-through of Ryzen CPUs for commercial notebooks and desktops up more than 40% year over year.
Gaming revenue increased 50% year over year to $843 million, though Hu noted a 35% sequential decline due to lower semi-custom sales. Su said AMD expects semi-custom SoC annual revenue in 2026 to decline by a “significant double-digit percentage” as the current console cycle enters its seventh year, while also noting progress toward a next-generation Xbox launch in 2027.
In embedded, revenue increased 3% year over year to $950 million, with Hu citing strengthening demand across several end markets. Su emphasized design win momentum, saying AMD closed $17 billion in embedded design wins in 2025, up nearly 20% year over year, and has won more than $50 billion of embedded designs since acquiring Xilinx.
Guidance and key themes for 2026
For the first quarter of 2026, AMD guided revenue to approximately $9.8 billion, plus or minus $300 million, including about $100 million of MI308 sales to China. Hu said this implies 32% year-over-year growth at the midpoint and an expected 5% sequential decline due to seasonal patterns in client, gaming, and embedded, partially offset by data center growth. AMD guided non-GAAP gross margin of approximately 55% and non-GAAP operating expenses of approximately $3.05 billion.
On China, Su said the MI308 revenue recognized in Q4 reflected licenses approved through work with the administration and orders from early 2025. Beyond Q1, she said AMD is not forecasting additional China MI308 revenue due to a “very dynamic situation,” though the company has submitted licenses for MI325.
Management repeatedly emphasized 2026 as a key year for data center growth, driven by both server CPUs and data center AI GPUs. Su said EPYC orders have strengthened over the past several quarters, “especially over the last 60 days,” and argued that CPUs remain central to AI infrastructure buildouts. Hu and Su also said AMD expects operating expense growth to be slower than revenue growth as 2026 progresses, supporting operating leverage, while continuing to invest in AI hardware, software, and go-to-market capabilities.
About Advanced Micro Devices NASDAQ: AMD
Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.
Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.
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