Key Points
Advanced Micro Devices (NASDAQ: AMD) reported a 34% year-over-year revenue increase, reaching a record $2.5 billion for the fourth quarter of 2025. Free cash flow nearly doubled to $2.1 billion, contributing to a full-year total of $5.5 billion, driven by strong demand for high-performance computing and AI products. Despite facing stiff competition from Nvidia in the AI chip market, AMD’s upcoming Helios computing platform aims to enhance its market position.
While AMD shares are trading at 42 times 2026 free cash flow estimates, this valuation drops to 16 times for 2028 estimates, suggesting potential for growth. The company’s CEO, Lisa Su, emphasized broad-based demand as a key driver for its financial performance.
