Advanced Micro Devices Inc. (NASDAQ:AMD) is among the best machine learning stocks to buy according to analysts. Investors have been pitting AMD against NVIDIA for months and have expected the company’s data center chip business to accelerate and make some dent in NVIDIA’s market share. However, AMD’s Q4 2025 results on February 3 and the approximately 17% decline in its share price the day after indicate that expectations have risen significantly recently.
For Q4, Advanced Micro Devices Inc.’s (NASDAQ:AMD) results and guidance exceeded street expectations. Q4 sales grew 34% to $10.3 billion, exceeding a Bloomberg average consensus estimate of $9.7 billion. Profitability was stronger as well, with adjusted EPS of $1.53 coming in 16% ahead of the consensus of $1.32.
The results were equally strong across segments. AMD’s data center business sales of $5.38 billion surged 39% year over year and came in 8% ahead of expectations, driven by strong demand for the EPYC processors and the continued ramp of its Instinct GPU shipments. On the other hand, Personal Computer-related sales of $3.1 billion (+34% YoY) also exceeded estimates by 7%.
For Q1 2026, the company guided revenue to $9.5-$10.1 billion, with an average of $9.8 billion, exceeding street estimates of $9.39 billion. However, according to a Bloomberg report, some analysts projected revenue above $10 billion and expected the company to guide to higher growth given its artificial intelligence spending, which helped explain the disappointment with the guidance.
Now, the focus is shifting to the second half of the year, when Advanced Micro Devices Inc. (NASDAQ:AMD) is expecting to release its powerful chip designs in the second half, including the AI accelerator MI450, which the company CEO, Dr. Lisa Su, called “an inflection point” for the company. On the results call, she rebuffed concerns about component shortage and said:
We see the ability to continue to grow throughout the year. There’s no question that demand continues to be strong. And so, we’re working with our supply chain partners to increase supply as well. But from what we see today, I think the overall server situation is strong.
Following the results, most analysts on the street have maintained their recommendations, though some have made marginal revisions to their price targets. As of the time of writing, over 80% of analysts are bullish on AMD, with a consensus 1-year median price target of $300, implying nearly 41% upside.
Advanced Micro Devices Inc. (NASDAQ:AMD) is a leading semiconductor company specializing in high-performance computing and graphics solutions. Its broad product portfolio includes microprocessors, graphics processors, and system-on-chip (SoC) solutions designed for data centers, gaming, and embedded systems.
