- AMD’s Q1 earnings reached $0.96 per share with $7.44 billion in revenue, surpassing estimates by $0.02 and $0.32 billion, respectively, driven by a 57% surge in Data Center revenue to $3.7 billion and a 68% increase in Client revenue to $2.3 billion.
- The company’s stock rose $4.76 to $102.72 after hours, bolstered by a 35.9% year-over-year revenue growth and an in-line Q2 revenue forecast of $7.10 billion to $7.70 billion against a $7.22 billion consensus.
- Despite a 30% drop in Gaming revenue to $647 million and a 3% decline in Embedded revenue to $823 million, AMD’s focus on AI, data center, and Zen 5 processors signals strong growth potential for 2025.
Advanced Micro Devices (AMD) is riding a wave of robust financial performance, with its stock climbing $4.76 to $102.72 in after-hours trading on Tuesday, fueled by a first-quarter earnings report that surpassed expectations and a solid revenue forecast for the current quarter. The company reported Q1 earnings of $0.96 per share, excluding non-recurring items, beating the consensus estimate of $0.94 by $0.02, while revenues surged 35.9% year-over-year to $7.44 billion, topping the $7.12 billion consensus. This growth was propelled by strong demand across AMD’s diversified portfolio, particularly in its Data Center segment, which generated $3.7 billion in revenue, a 57% increase year-over-year, driven by robust sales of AMD EPYC CPUs and Instinct GPUs. The Client and Gaming segment also contributed significantly, posting $2.9 billion in revenue, up 28% year-over-year, with Client revenue soaring 68% to $2.3 billion, fueled by enthusiasm for the latest “Zen 5” AMD Ryzen processors and a richer product mix. However, Gaming revenue fell 30% to $647 million due to declining semi-custom revenue, and the Embedded segment saw a modest 3% decline to $823 million amid mixed market demand.
Dr. Lisa Su, AMD chair and CEO, highlighted the company’s accelerating growth, marking the fourth consecutive quarter of year-over-year expansion, driven by strength in core businesses and increasing momentum in data center and AI markets. Despite navigating a complex macroeconomic and regulatory landscape, AMD’s in-line Q2 revenue guidance of $7.10 billion to $7.70 billion, compared to the $7.22 billion consensus, reflects confidence in its differentiated product offerings and consistent execution. Jean Hu, AMD EVP, CFO, and Treasurer, emphasized the company’s 36% revenue growth and enhanced earnings leverage, underscoring strategic investments in research and development and market initiatives to drive long-term value.
AMD’s performance aligns with broader industry trends, as demand for high-performance computing and AI infrastructure continues to surge, positioning the company as a key player alongside competitors like Nvidia (NVDA) and Intel (INTC). The strong uptake of Zen 5 processors and EPYC CPUs highlights AMD’s ability to capture market share in both consumer and enterprise segments, though challenges in gaming and embedded markets signal the need for continued diversification. As AMD balances these dynamics, its focus on innovation and scale positions it for sustained growth in 2025, with its stock surge reflecting investor optimism in its strategic trajectory.
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