Tue Feb 24 12:00:00 UTC 2026: ### AMD Stock Dips Despite Revenue Growth; Data Center Performance Under Scrutiny
The Story:
Advanced Micro Devices (AMD) stock has experienced a significant dip in early 2026, falling approximately 23% from its recent high after initially surging in January. This decline follows the release of its Q4 2025 earnings report, prompting investors to question whether the sell-off is justified or merely a market overreaction. While AMD’s overall revenue growth in Q4 2025 was a respectable 34%, the performance of its data center division is under scrutiny, as it grew by only 39% year-over-year, falling short of the company’s projected 60% compounded annual growth rate (CAGR) through 2030.
Key Points:
* AMD stock fell nearly 23% from its recent high following the Q4 2025 earnings announcement.
* Overall revenue growth in Q4 2025 was 34%.
* Data center revenue increased by 39% year-over-year, below the anticipated 60% CAGR.
* Management maintains its guidance for a 60% CAGR in the data center division through 2030.
* Analysts suggest the sell-off may be an overreaction and recommend buying the dip, anticipating improved results in 2026.
Key Takeaways:
* AMD’s stock performance is heavily influenced by investor perception of its data center division’s growth potential.
* Failure to meet projected growth targets, even if still demonstrating growth, can trigger significant market corrections.
* The market is closely watching AMD’s ability to compete with Nvidia in the AI sector and capture a larger share of the data center market.
* Despite the recent dip, analysts remain cautiously optimistic about AMD’s long-term prospects, particularly if the data center division can accelerate its growth.
* Investors should carefully consider AMD’s data center performance throughout 2026 to gauge whether management’s projections are realistic.
First Piper 