Maybank Securities Thailand wrote in a note that Advanced Micro Devices (AMD) reported robust fourth-quarter 2025 results, with total revenue reaching $10.3 billion, marking a significant increase of 34% year-on-year (YoY) and 11% quarter-on-quarter (QoQ). This performance outpaced market expectations of $9.9 billion, driven primarily by strong demand in its Data Center, Client, and Gaming segments, underscoring surging needs in AI and high-performance computing (HPC) chips.
Segment Highlights:
- Data Center: Revenue climbed to $6.5 billion, up 38% YoY, fueled by broader adoption of AMD’s AI solutions and next-generation CPUs in cloud, enterprise, and gaming consoles.
- Client Segment: Registered $3.1 billion in revenue, up 29% YoY, reflecting widespread acceptance of AMD’s product innovations and heightened collaborations with technology partners aimed at enhancing data processing capabilities.
Earnings per share (EPS) stood at $1.53—beating consensus estimates of $1.47 by 4%—demonstrating strong cost management and successful expansion in the commercial customer base.
Looking ahead, AMD guides for Q1 2026 revenue of $9.8 billion +/- $300 million, exceeding consensus expectations of $9.38 billion. Growth is expected to be driven by accelerated adoption of AI accelerators, data center solutions, and gaming GPUs.
Despite the upbeat results and guidance, AMD shares dipped in after-hours trading, as some investors expressed concerns that the Q1 revenue guidance, while above expectations, does not show the dramatic acceleration some in the market had hoped for. Additionally, heightened competition among major industry peers prompted profit-taking following the earnings release.
Maybank added that AMD currently trades at a forward P/E of 34.23x, above its five-year average of 30.69x (+0.5 S.D.). Bloomberg Consensus sets a price target at $292.19, representing a 20.7% upside from the latest price of $242.11. The target for AMD80 is 1.84 baht, reflecting an upside of 20.4%. Analysts recommend considering entry at current levels.
