Advanced Micro Devices AMD is riding on strong Data Center revenues, which reached $5.38 billion, up 39.4% year over year and accounted for 52.4% of fourth-quarter 2025 total revenues. Sequentially, revenues climbed 23.9%. The top-line benefited from strong demand for fifth-gen EPYC processors and Instinct MI350 series GPUs. In server, adoption of fifth-gen EPYC CPUs accounted for more than half of the total server revenues, while fourth-gen EPYC sales were also robust.
In cloud, hyperscaler demand was very strong as North American customers expanded deployments. EPYC-powered public cloud offerings grew significantly in the reported quarter, with AWS, Google and others launching more than 230 new AMD instances. Hyperscalers launched more than 500 AMD-based instances in 2025, increasing the number of EPYC cloud instances by more than 50% year-over-year to nearly 1,600. The leading server providers now offer more than 3,000 solutions powered by fourth and fifth-gen EPYC CPUs that are optimized for all major enterprise workloads. As a result, the number of large businesses deploying EPYC on-prem more than doubled in 2025.
Strong server CPU demand has been a key catalyst for AMD. As hyperscalers expand their infrastructure to meet growing demand for cloud services and AI, EPYC is gaining adoption. This trend bodes well for the next-gen Venice CPU. AMD is gaining traction in the data center AI business. The company delivered record Instinct GPU revenues in the fourth quarter, led by strong demand for MI 350 Series.
AMD’s data center AI business prospects are expected to accelerate with the upcoming MI450 series, which forms the crux of the 6-gigawatt (GWs) deal inked between AMD and Meta Platforms. The launch of the MI500 series, powered by AMD’s CDNA 6 architecture built on advanced 2-nanometer process technology and featuring high-speed HBM4E memory, is expected to drive further growth.
AMD now expects first-quarter 2026 revenues of $9.8 billion (+/-$300 million). At the mid-point of the revenue range, this represents year-over-year growth of approximately 32% and a sequential decline of approximately 5%. The Zacks Consensus Estimate for revenues is currently pegged at $9.84 billion, suggesting 32.3% growth from the figure reported in the year-ago quarter.
AMD’s prospects suffer from stiff competition. NVIDIA NVDA and Broadcom AVGO are major competitors in the Data Center space. NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company’s newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure. Broadcom is benefiting from strong demand for its networking products and custom AI accelerators. AVGO’s networking portfolio is gaining from strong demand for Tomahawk 5 and 6 products, as well as the Jericho 4 Ethernet fabric router.
