AMD Analysis: The AI Challenger Hitting Its Stride as Q4 Revenue Crosses $10 Billion for the First Time
Advanced Micro Devices (NASDAQ: AMD) has delivered a statement quarter. The company's fiscal Q4 2025 results, reported on February 4, showed revenue surging to $10.27 billion — the first time AMD has crossed the $10 billion mark in a single quarter — representing a 34% year-over-year increase from Q4 2024's $7.66 billion. At $203.08 per share, AMD trades at a $331 billion market capitalization, positioning it as the clear number-two player in the AI accelerator market behind NVIDIA's $4.5 trillion colossus. The stock has had a volatile 52-week ride, swinging between a low of $76.48 and a high of $267.08, and currently sits roughly 24% below its peak. That pullback creates an interesting entry point question: is AMD a maturing AI story being appropriately de-rated, or is the market underpricing a company that just posted 38% sequential revenue growth in Q4 and is scaling its data center business at breakneck pace? With Cathie Wood's ARK Invest buying $21 million in AMD shares on February 17 — a notable dip-buy — and institutional holders like Glenview Trust boosting positions by 19.4%, smart money appears to be voting with conviction. AMD's full-year 2025 revenue reached approximately $34.6 billion, up from $25.8 billion in fiscal 2024, a 34% annual growth rate that few semiconductor companies of this scale can match. The company generated $7.7 billion in operating cash flow and $6.7 billion in free cash flow, more than doubling the prior year's figures. But at 77.5x trailing earnings, AMD demands a premium that requires sustained execution. This analysis digs into whether the fundamentals justify the price.