Beta Finch - AI & Cloud Leaders - EN

**Beta Finch: Amazon Q4 2025 Earnings Breakdown**

ALEX: Welcome to Beta Finch, your AI-powered earnings breakdown! I'm Alex, and joining me as always is my co-host Jordan. Today we're diving into Amazon's fourth quarter 2025 results, and wow - what a quarter this was.

Before we jump in though, I need to mention that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

Now Jordan, Amazon just posted some impressive numbers - $213.4 billion in revenue, up 12% year over year. But the real star of the show seems to be AWS, doesn't it?

JORDAN: Absolutely, Alex. AWS is firing on all cylinders right now. They hit $35.6 billion in quarterly revenue with 24% growth - that's the fastest growth they've seen in thirteen quarters. More importantly, AWS is now running at a $142 billion annualized rate. To put that in perspective, they added $2.6 billion quarter-over-quarter and nearly $7 billion year-over-year.

ALEX: Those are massive numbers. And Andy Jassy was pretty bullish about their AI business specifically. What caught your attention there?

JORDAN: The AI story is fascinating. Their chips business - that's Graviton and Trainium combined - is now over $10 billion in annual revenue and growing triple digits. But here's the kicker: Trainium alone is a multi-billion dollar business, and they say nearly all of their Trainium 3 supply will be committed by mid-2026. That suggests incredible demand.

ALEX: Speaking of demand, they announced plans to invest about $200 billion in capital expenditures. That's a staggering number that probably has some investors nervous about returns.

JORDAN: Yeah, that $200 billion figure dominated the Q&A session. Mark Mahaney from Evercore really pressed them on return on invested capital, and Jassy's response was telling. He said they're monetizing capacity as fast as they install it, and emphasized that AWS has a 35% operating margin despite all this investment. His confidence comes from their track record - they've proven they can forecast demand and avoid wasted capacity.

ALEX: What's interesting is how Jassy framed this AI opportunity. He called it "extraordinarily unusual" and said every customer experience we know today will be reinvented with AI. That's a pretty bold statement.

JORDAN: It really is, and the numbers back up some of that optimism. Their Bedrock service is now a multi-billion dollar annualized business with customer spend growing 60% quarter-over-quarter. Amazon Nova Forge, their new pre-training customization tool, sounds like a potential game-changer for enterprises wanting to train models on their own data.

ALEX: Let's pivot to the retail side for a moment. The stores business showed solid growth, but there were some interesting trends in customer behavior.

JORDAN: Right, everyday essentials are becoming huge for them - growing nearly twice as fast as other categories and representing one out of every three units sold. Their same-day delivery reached nearly 70% more items than last year, and here's a stat that jumped out: customers using their perishables delivery service shop more than twice as often as those who don't.

ALEX: That perishables business seems to be a real growth driver. They're calling themselves a large grocer now with over $150 billion in gross sales.

JORDAN: And the speed improvements are remarkable. On Christmas Eve, customers in 4,000 US cities could order items until midday and get same-day delivery. Their "add to delivery" feature, launched just six months ago, already makes up 10% of all Prime volume. These aren't just incremental improvements - they're fundamentally changing how people shop.

ALEX: One thing that came up in the Q&A was about AI agents and shopping. There's concern that AI could compress the advertising funnel. How did Jassy respond

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**BETA FINCH PODCAST SCRIPT**

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**ALEX:** Welcome to Beta Finch, your AI-powered earnings breakdown. I'm Alex, and I'm here with my co-host Jordan to dive into AMD's blockbuster Q4 2025 earnings call. Before we get started, I want to remind everyone that this podcast is AI-generated content for educational and entertainment purposes only. Nothing we discuss should be considered investment advice. Always do your own research and consult a qualified financial advisor before making any investment decisions.

**JORDAN:** Thanks Alex. And wow, what a quarter for AMD! Let me start with the headline numbers because they're pretty impressive. Q4 revenue hit $10.3 billion, up 34% year-over-year, and for the full year they reached a record $34.6 billion in revenue. Net income jumped 42% to $2.5 billion in the quarter.

**ALEX:** Those are strong numbers across the board. But what really caught my attention was their data center segment performance. Jordan, can you break down what's happening there?

**JORDAN:** Absolutely. The data center segment was the star of the show with $5.4 billion in revenue, up 39% year-over-year. What's fascinating is they're seeing growth on two fronts - their traditional EPYC server CPUs are crushing it, and their AI GPU business with the Instinct chips is really starting to ramp up.

**ALEX:** And Lisa Su, AMD's CEO, seemed particularly bullish about their AI prospects. She mentioned they're targeting tens of billions in AI revenue by 2027. That's a pretty bold claim.

**JORDAN:** It is bold, but they've got some big partnerships backing it up. The most notable is their multi-generation deal with OpenAI to deploy six gigawatts of Instinct GPUs. That's massive scale we're talking about. And they're expecting their next-gen MI450 chips and Helios platform to start shipping in the second half of 2026.

**ALEX:** Let's talk about that China situation though, because that added some complexity to the numbers. They had $390 million in revenue from MI308 sales to China in Q4, which wasn't in their original guidance.

**JORDAN:** Right, and that's important context. Those were from licenses approved earlier in 2025, and they're only forecasting another $100 million from China in Q1. Beyond that, they're not providing any guidance on China revenue because of the regulatory uncertainty. So investors should view those China numbers as essentially one-time benefits rather than recurring revenue.

**ALEX:** The other segment that really impressed me was their client and gaming business. $3.9 billion in revenue, up 37% year-over-year. Their Ryzen processors seem to be gaining serious market share.

**JORDAN:** That's a great point, Alex. What I found interesting is they're not just competing on the consumer side - they're making real inroads in commercial PCs. Their Ryzen CPU sell-through for commercial notebooks and desktops grew over 40% year-over-year. That's typically a stickier, higher-margin market.

**ALEX:** Speaking of margins, let's talk about profitability. Their gross margin hit 57% in Q4, though that included a one-time inventory reserve release. Even adjusting for that, they were at about 55%, which is still solid.

**JORDAN:** And Jean Hu, their CFO, seemed confident about margin progression going forward. She mentioned they're benefiting from favorable product mix across all their businesses - newer generation products in data center, moving up-market in client, and recovery in their embedded business.

**ALEX:** The Q&A session had some interesting moments too. One analyst asked about supply constraints for their server CPUs, and Lisa Su acknowledged they've been increasing supply capacity because demand has been so strong.

**JORDAN:** That's a good problem to have, but it does raise questions about whether they can meet all the demand they're seeing. Su mentioned they're working with supply chain partners on multi-year agreements, which suggests they're taking this seriously.

**ALEX:** There was a

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