Advanced Micro Devices (AMD) reported a 50% year-over-year increase in gaming revenues, totaling $843 million in Q4 2025, driven by strong demand for its Radeon RX 9000 series GPUs. However, revenues dropped 35% sequentially due to lower semi-custom sales, and AMD projects a significant double-digit percentage decline in semi-custom SoC annual revenues in 2026, affecting future gaming revenue. The company expects first-quarter 2026 revenues to decline 5% sequentially, yet rise 32% year-over-year to approximately $9.84 billion.
AMD’s launch of new products, including the Ryzen 7 9850X3D and AI-driven Ryzen AI 400 Series processors, aims to bolster its position in the Client and Gaming segments. Conversely, the company faces stiff competition from NVIDIA and Intel, with NVIDIA’s gaming revenues reaching $3.73 billion in Q4, up 47% year-over-year, and Intel’s new Core Ultra Series processors boasting significant performance improvements.
Year-to-date, AMD’s shares have fallen by 8.4%, in contrast to a 10.5% decline in the broader tech sector. The Zacks Consensus Estimate for AMD’s 2026 earnings per share remains at $6.61, indicating a projected 58.5% growth from 2025.
