A varied portfolio often signals business health, but Wall Street doesn’t see it that way for AMD. Despite strong performance figures in Q4, including a 213% surge in net income and a 34% revenue increase, shareholders remain wary. Key growth areas like datacenter and client products have driven revenue to $10.27 billion. However, AMD predicts a dip to $9.8 billion for Q1 2026, which represents 32% growth amidst seasonal declines in gaming and embedded sectors but stronger AI and datacenter performance.

Analysts express concern that a seasonal decline in sectors like PC sales, amplified by dwindling demand for AMD chips used in gaming consoles, might overshadow gains in the datacenter division. Another obstacle is the ongoing memory shortage, with prices potentially doubling as demand outpaces supply.

Despite these challenges, CEO Lisa Su remains optimistic, foreseeing growth in the enterprise and high-end PC segments. The company plans to focus on these lucrative markets to counterbalance mainstream PC volume declines.

Moreover, Su isn’t overly concerned about memory shortages impacting AMD’s expanding GPU business, citing proactive planning and collaboration with suppliers to meet demand. With upcoming GPUs designed for high bandwidth memory efficiency, AMD aims to maintain its competitive edge while preparing for a significant ramp-up in production over the coming years. ®