- 4Q25 revenue was within our expectations, with FY25 revenue at 100% of our FY25 forecast. 4Q25 PATMI exceeded our expectations, with FY25 revenue at 112% of our FY25 forecasts. This was due to higher Instinct MI350 series GPU and EPYC CPU sell-through. The higher mix of data centre revenue drove margin expansion, as data centre revenue accelerated 39% YoY to US$5.4bn, accounting for 52% of 4Q25 revenue (3Q25: 47%).
- AMD mentioned it is well-positioned to grow data centre segment revenue by more than 60% annually over the next 3-5 years, driven by strength in its Instinct GPU and EPYC CPU roadmap. MI400 series GPU and Helios are on track to ramp by 2H26e. MI500 series GPU, built on advanced 2nm-process technology and features HBM4E memory, is on track to launch in 2027e. Nvidia provided GPU roadmap for Vera Rubin GPU to ship by 2026e, but did not guide the next-generation GPU product from 2027e and beyond.
- We upgrade to BUY (prev. ACCUMULATE), with target price unchanged at US$280. We rolled forward our model and maintained WACC/growth rate assumptions at 7.1%/5% respectively.
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