AMD CEO Lisa Su spoke out on worries about the company's sales outlook during a recent earnings call. She made her comments from the company's base in Santa Clara, California, as AMD shared its fourth-quarter results for 2025 on February 3, 2026. Su stressed that demand for the firm's advanced chips keeps picking up speed, especially in data centers where sales have jumped from a small slice of the business to its top earner.
Background
AMD builds computer chips that power everything from laptops to giant server farms. The company has pushed hard into the market for parts that handle artificial intelligence tasks. Over the past year, big tech firms and cloud providers have ramped up spending on these high-end processors to train AI models and run complex computations.
In the fourth quarter of 2025, AMD posted revenue of $10.27 billion. That marked a 34.1 percent rise from the year before. It topped what Wall Street expected, which was around $9.69 billion. Profit per share came in at $1.53 on an adjusted basis, beating forecasts of $1.32. These numbers show the business holding steady amid a hot market for AI gear.
The data center side of AMD's operations has grown fast. It now brings in more money than any other part of the company. Sales of EPYC CPUs, designed for servers, hit record levels. Graphics processing units under the Instinct brand also saw heavy uptake from major customers. This shift comes as rivals like Nvidia dominate headlines, but AMD carves out its space with strong performance at lower costs.
Earlier quarters set the stage for this report. AMD had warned of some slowdowns in personal computer sales due to higher prices for memory parts. Still, the firm kept focus on data centers, where demand shows no signs of letting up. Partnerships with players like OpenAI have helped lock in big orders for GPU deployments.
Key Details
Lisa Su directly tackled questions about the outlook for coming months. AMD guided for first-quarter 2026 revenue around $9.8 billion, give or take $300 million. That points to a small drop from the prior quarter but still growth of about 32 percent from a year earlier. Analysts had penciled in $9.4 billion, so the number eased some doubts.
"We are going into a big inflection year here in 2026. The CPU business is absolutely on fire."
- Lisa Su, Chair and CEO, AMD
Su pointed to the data center unit as the star performer. It moved from fourth place in revenue share to first over recent periods. Demand for CPUs runs hot, she said, with GPUs adding to the momentum. The Instinct MI350 series sees quick rollout, and server market share keeps climbing.
Product Pipeline
Looking ahead, AMD plans launches that could fuel more gains. The MI450 series of GPUs and Venice CPUs target data center needs. Management calls 2026 a turning point for AI products. These items aim to attract cloud giants and business users alike. Sales to China for certain AI GPUs will wrap up soon due to rules there, but the company expects broad demand elsewhere.
Other areas show mixed results. The embedded segment, used in test equipment and planes, returned to growth. Gaming chips rose year over year, though console-related sales may dip as that market matures. Client products for PCs face headwinds from rising memory costs, trimming the overall market a touch.
Operating margins hit 17.1 percent, up from 11.4 percent last year. This came from better product mixes and tight cost controls. The firm keeps investing in research and sales pushes for AI and data centers.
What This Means
AMD enters 2026 with wind at its back in data centers. Strong results and upbeat guidance signal the AI boom lifts the whole chip sector. Investors watch how new products land with customers. Success here could widen AMD's foothold against bigger rivals.
The sequential revenue dip in the first quarter reflects normal patterns after holiday peaks. But year-over-year gains show underlying strength. CFO Jean Hu noted plans to grow data center AI sales while boosting efficiency for shareholders.
Challenges linger. Rules on exports to China limit some GPU revenue after this quarter. PC market pressures from inflation could slow client growth. Still, management bets on AI accelerators and server CPUs to drive the bulk of expansion.
Broader industry trends play in. Hyperscalers pour billions into infrastructure for AI. Enterprises follow suit for their own needs. AMD's focus on cost-effective, high-power chips positions it well. Record server sales stem from better speed and ownership costs versus options.
For the full year 2025, revenue and profits topped goals. Non-GAAP gross margins sat at solid levels. Inventory levels ticked up slightly, but nothing alarming. The company eyes operating use as volumes rise.
Wall Street reacted with shares slipping a bit post-earnings. Some fret over the short-term guidance despite beats. Long-term, the story centers on AI ramps and product wins. Su's words aim to refocus attention on these positives.
AMD's path forward hinges on execution. New AI lines must scale fast. Customer wins in cloud and enterprise matter most. If demand holds, 2026 could deliver the inflection Su described. The chip maker stays nimble amid fast-changing tech demands.
