Chip designer AMD reported record fourth-quarter and full-year 2025 results, but still saw shares fall by around eight percent after its Q1 2026 forecast fell below expectations.

For FY26, the company posted revenue of $34.6 billion, with fourth-quarter revenue totaling $10.3bn, with both figures representing a Year-over-Year (YoY) increase of 34 percent.

However, for the first quarter of 2026, AMD said it was expecting $9.8 billion in revenue, plus or minus $300 million, below some analyst projections, which topped $10bn. The company went on to say that such a figure would represent a sequential decline of five percent, but a rise of 32 percent YoY.

Data center segment revenue also reached new records, totaling $5.4 billion for the quarter and $16.6bn for the full-year, an increase of 39 percent and 32 percent YoY, respectively. AMD said the growth was driven by strong demand for its Epyc CPUs and Instinct GPUs, with CEO Dr. Lisa Su saying on the company’s earnings call that its fifth-generation Turin CPUs accounted for more than half of total server revenue.

“Fourth-[generation] Epyc sales were also robust as our prior generation CPUs continue to deliver superior performance and TCO compared to competitive offerings across a wide range of workloads,” Su said. “As a result, we had record server CPU sales to both cloud and enterprise customers in the quarter, and exited the year with record share,” going on to note that server CPU demand is expected to remain strong in 2026.

During the final quarter of 2025, Su said more than 230 new AMD cloud instances were launched, with hyperscalers launching more than 500 AMD-based instances throughout the year, bringing the total deployed to almost 1,600.

Su also said during the call that AMD had seen $440m in MI308 sales to customers in China during the year, approximately $360m of which has been released from export control. In August, the Trump administration granted permission for AMD’s MI308 GPUs to be sold to China, provided that the government receives 15 percent of the proceeds.

Of those MI308 sales, around $390m occurred in Q4 2025. However, the company is expecting sales to China during the first three months of 2026 to decline to around $100m.

Turning to AI, GPU revenue during the quarter was driven by the ramp-up of shipments of MI350 accelerators, with Su saying the company was “entering the next phase of Instinct adoption,” including expanding its footprint with existing partners and adding new customers.

Regarding AMD’s forthcoming double-wide Helios rack – slated for release in Q3 2026, Su said that the company was in “active discussions” with customers for multi-year deployments of the system.

One such customer is OpenAI, which, in October 2025, AMD announced it was partnering with for the supply of 6GW-worth of GPUs. The deal is expected to kick off in the second half of 2026, with OpenAI saying it would build a 1GW data center using AMD MI450 chips, starting this year.

While she did go on to reference AMD’s “multi-generation partnership with OpenAI,” few additional details were provided about the location or progress of the data center.

In response to questions about the deal from analysts, Su said the company has a “very strong relationship” with the generative AI giant and that the “ramp starting in the second half of the year going into 2027” is “on track.”

Answering a separate question about the partnership, she added: “As we look forward, I think we are optimistic about the MI450 ramp for OpenAI. But I also want to remind everyone that we have a broad set of customers that are very excited about MI450 series.”