Advanced Micro Devices reported Q4 earnings that exceeded expectations, but Q1 forecast fell short amid AI spending growth. Stock dropped over 6% in extended trading. Q4 EPS was $1.53 vs. $1.32 expected, revenue was $10.27 billion vs. $9.67 billion expected. Net income increased to $1.51 billion. AMD plans to release new AI system called Helios.

For Q1, AMD expects $9.8 billion in revenue, below analyst expectations of $9.38 billion. The company’s data center segment had $5.4 billion in sales, up 39% YoY, driven by CPU and AI GPU growth. AMD CEO Lisa Su mentioned strong demand for server CPUs due to growing cloud services and AI workflows. Client and gaming segment rose 37% to $3.9 billion.

Despite concerns over U.S. export controls, AMD reported $390 million in China sales of its Instinct MI308 chips in Q4. The company anticipates $100 million in China revenue in the current quarter. AMD’s stock has more than doubled in the past year, with plans to expand its customer base and continue driving growth in the AI market.

Read more at CNBC: AMD earnings report Q4 2025