AMD stock slides after-hours after earnings, despite record revenue and upbeat outlook

AMD shares were lower in after-hours trading Tuesday following the company’s latest earnings release, even as it posted record quarterly revenue and guided to another year-over-year jump in sales for the current quarter. The move highlights a familiar pattern for mega-cap chip stocks: strong results can still be met with volatility when traders focus on near-term sequencing, margin expectations, and the pace of AI-related ramp-ups.

As of 8:15 p.m. ET on Tuesday, February 3, AMD traded at about $242.11, down $3.80 from the prior close, after swinging widely during the regular session.

AMD stock price swings after earnings

The post-close dip came after an unusually volatile day. AMD traded between roughly $220.81 and $252.52 during the session, a range that underscores how sensitive the stock has become to incremental changes in guidance and commentary around data-center demand.

One driver of the whipsaw is positioning. AMD has been a high-conviction AI and data-center trade, which tends to amplify reactions when the market debates whether growth is accelerating fast enough to justify premium valuation multiples.

AMD earnings: the headline numbers

AMD reported a record fourth quarter, with revenue of $10.27 billion. Profitability improved as well, with gross margin at 54% on a GAAP basis and 57% on a non-GAAP basis. Diluted earnings per share were $0.92 on a GAAP basis and $1.53 on a non-GAAP basis.

For the full year 2025, AMD reported revenue of $34.64 billion, reflecting strong growth across its portfolio. The company emphasized momentum in both CPUs and its AI-focused data-center products as demand broadened.

Guidance points to growth, but with a sequential dip

For the first quarter of 2026, AMD projected revenue of about $9.8 billion, plus or minus $300 million. The midpoint implies year-over-year growth of roughly 32%, but also a sequential decline of about 5% versus the prior quarter.

That sequential step-down is likely the main reason the stock didn’t simply ride the “beat-and-raise” narrative. Investors often want the cleanest possible setup: accelerating sequential revenue, expanding margins, and unambiguous evidence of faster AI shipments. When any one of those elements looks less linear—even if the annual growth rate remains strong—traders can use the event to reduce risk.

AMD also guided for non-GAAP gross margin of approximately 55% for the first quarter, a number that will be watched closely because margin is where product mix and pricing power show up most clearly.

The data-center engine stays central

AMD said data-center revenue reached $5.4 billion in the quarter, up 39% year over year, driven by demand for its server CPUs and continued ramping of data-center GPU shipments. For the full year, data-center revenue was $16.6 billion, up 32% year over year.

The market’s real-time debate is less about whether data-center demand exists and more about cadence: how quickly deployments scale, how smooth supply and integration are, and whether orders convert into revenue on the timeline investors expect. In this environment, small shifts in expected shipment timing can move the stock.

Export controls and China-related noise

One additional factor investors are parsing is the effect of U.S. export controls on certain advanced AI accelerators. AMD disclosed that full-year 2025 results included net inventory and related charges tied to export controls on specific data-center GPU products, while the fourth quarter benefited from a release of previously reserved inventory-related charges.

It also noted meaningful fourth-quarter revenue associated with data-center GPU sales to China. Those disclosures add complexity to forecasting because they can create quarter-to-quarter noise in both revenue mix and margin. In practice, traders often discount one-time accounting impacts, but they still influence confidence in the smoothness of the near-term run rate.

What to watch next

Three near-term catalysts stand out:

1. Management commentary and Q1 updates: The market will listen for specifics on data-center GPU ramp pace, customer concentration, and supply constraints.

2. Margin trajectory: With Q1 non-GAAP gross margin guided around 55%, investors will look for signs that mix is shifting toward higher-margin data-center revenue without unexpected cost headwinds.

3. Competitive AI chip cycle: New product launches across the industry can change pricing, availability, and customer timelines quickly. Any firm signals on next-generation platforms and deployment schedules can move expectations.

Bottom line: AMD’s earnings showed real growth and strong positioning in AI infrastructure, but the stock’s reaction suggests investors want cleaner visibility on the quarter-to-quarter slope of that growth—not just a strong year-over-year story.

Sources consulted: AMD Investor Relations, Reuters, Yahoo Finance, Nasdaq