Revenue guidance not explosive enough, causing AMD to drop over 8% after hours. Su Zifeng: Global memory chip shortages will not affect the company's supply.

K-LinePoet · 2026-02-09T22:20:48+00:00

Super Micro Semiconductor (AMD) reported revenue of $10.27 billion in Q4 2025, a 34% year-over-year increase, reaching a new quarterly high. However, due to revenue guidance falling short of some expectations, the stock price declined further after hours. CEO Su Zifeng stated that data center and AI businesses are experiencing strong growth and are expected to continue rising in the coming years. Despite short-term sales mainly relying on CPUs, overall performance remains optimistic.

K-LinePoet

2026-02-09 22:20:48

Abstract generation in progress

On February 3rd, local time, Advanced Micro Devices (AMD.O) announced its Q4 2025 earnings. Data shows that AMD’s revenue for Q4 2025 was $10.27 billion, a new quarterly high, up 34% year-over-year; adjusted earnings per share (EPS) for the quarter were $1.53, up 40% year-over-year; data center revenue increased to a record $5.4 billion.

However, despite the company’s revenue and EPS continuing to grow double digits in the fourth quarter last year, and outperforming Wall Street expectations, some investors were disappointed by the company’s revenue guidance. AMD’s stock price fell further after hours, declining about 1.7%, with an after-hours drop of over 8%.

AMD expects first-quarter revenue to be between $9.5 billion and $10.1 billion, with a midpoint of approximately $9.8 billion, slightly above analyst consensus expectations of $9.39 billion, while some more optimistic analysts anticipate over $10 billion.

AMD President and CEO Lisa Su stated during a conference call with investors that server CPU demand is “very strong,” and AI business is accelerating. Eight of the top ten AI companies use AMD’s Instinct chips to support production workloads. The company expects data center revenue to grow 60% annually over the next three to five years, and by 2027, AI revenue will reach “hundreds of billions of dollars.”

Additionally, the company expects that in the second half of this year, sales of new high-end AI servers for OpenAI and other clients will grow rapidly, and it stated that the global memory chip shortage will not affect its plans. Su said, “We do not believe there will be supply issues.”

However, these sales are not included in the company’s forecast for the current first quarter, which means other chips, such as central processing units (CPUs), will need to support most of the sales growth in the coming months.

AMD’s stock price has doubled over the past year, and since entering 2026, it has risen 13% through Tuesday’s close. After experiencing a significant stock price increase, less “explosive” good news may lead AMD to experience profit-taking.

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