Key Highlights on AMD and Alphabet’s 2025 Performance
Advanced Micro Devices (NASDAQ: AMD) reported a record revenue of $10.3 billion for its fiscal fourth quarter ending December 27, 2025, benefiting from demand in the artificial intelligence sector. However, its forecast of $9.8 billion revenue for the first quarter of 2026, a 32% increase from the previous year, fell short of Wall Street expectations, leading to a drop in share price.
Similarly, Alphabet (NASDAQ: GOOGL) achieved $113.8 billion in Q4 2025 revenue, marking an 18% year-over-year increase, and exceeded $400 billion in annual revenue for the first time. Despite strong performance driven by its search engine, significant capital expenditures of $27.9 billion in Q4—up 95% year-over-year—along with an anticipated increase in spending to between $175 billion and $185 billion in 2026, unsettled investors and resulted in a share price decline.
As both companies see fluctuating share valuations, AMD and Alphabet now have similar forward price-to-earnings ratios. Alphabet maintains a dominant 91% market share in the search engine space and offers a modest dividend, unlike AMD, making it a more attractive option for long-term investors.
