AMD Reports Record Q1 Earnings, Faces Challenges from US Export Controls on AI Chips

AMD posts highest quarter result ever -- Strong CPU sales, but GPUs and gaming trail behind

Late on Tuesday, AMD announced its financial results for the first quarter of fiscal 2025, posting its highest quarterly revenue ever. The company's results were driven by sales of expensive client and datacenter CPUs as well as improved sales of Instinct MI300-series AI accelerators. However, the company's gaming earnings dropped mainly due to the slowdown of console sales. But while the company's revenues in Q1 set records, AMD warned that the U.S. export tariffs may hit its sales by around $1.5 billion in 2025. AMD posted a revenue of $7.438 billion for the first quarter of 2025, up 36% year-over-year. When it comes to earnings, this is the best quarter posted by AMD throughout its history. In fact, it is more than AMD earned for the whole year 2019. AMD's gross profit totaled $3.736 billion, whereas its net income achieved $709 million for the quarter (up a whopping 2,139% for the same quarter a year ago) as its gross margin hit 50%. "We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum," said Dr. Lisa Su, AMD chair and CEO. "Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution positioning us well for strong growth in 2025." In the first quarter, AMD's Client and Gaming division generated $2.9 billion in revenue, reflecting a 28% increase compared to the same period last year. The Client subsegment contributed $2.3 billion, marking a 68% rise year-on-year, largely fueled by high interest in the latest generation of Ryzen AI processors and a product mix that included more premium parts (such as Ryzen 9000 X3D for desktops and Ryzen AI 300-series for laptops). In contrast, revenue from the Gaming subsegment declined 30% to $647 million, mainly due to reduced contributions from AMD's semi-custom system-on-chips for Microsoft Xbox and Sony PlayStation game consoles. Nonetheless, AMD expressed optimism about sales of its latest Radeon RX 9070-series graphics cards for desktop PCs based on the RDNA 4 architecture. AMD's Data Center division reported $3.7 billion in revenue in Q1 2025, reflecting a 57% rise compared to the same quarter last year. This sharp increase was primarily fueled by continued momentum in server processor, particularly the 5th Generation EPYC CPUs. Nonetheless, AMD says that sales of its Instinct MI300-series accelerators for AI also inreased. Specifically, AMD, highlighted new deployments of of its AI GPUs with Core42, Oracle, and Siemens. AMD's Embedded products unit generated $823 million in the first quarter, a 3% decrease from the prior year. This decline reflected varied conditions across end markets, with some areas showing strength while others struggling. Specifically, the launch of the EPYC Embedded 9005 processors, which are being integrated into IBM's latest storage systems and Cisco's high-end network security appliances, positively affected performance of the division. In addition, AMD also began shipments of Spartan UltraScale+ FPGAs and second-generation Versal AI Edge SoCs. However, demand for other products was a mixed bag. Looking ahead to the second quarter of 2025, AMD anticipates revenue to be around $7.4 billion ±$300 million. However, the company's profitability is expected to be impacted by a one-time $800 million inventory-related charge tied to the recently imposed U.S. export controls, which will lower the reported gross margin to around 43%. Without this adjustment, the gross margin would be around 54%.

US export controls on AI chips will cost AMD $1.5B in 2025

But a multi-billion dollar contract with Oracle for a pile of Instincts and Epycs should take the edge off AMD expects the Trump administration's newly implemented export controls on GPUs and AI accelerator sales to China to take a $1.5 billion byte out its 2025 revenues, executives revealed on a Tuesday earnings call with Wall Street. Despite the setback, AMD CEO Lisa Su remains confident in the House of Zen's ability to grow Instinct GPU revenues by "strong double digits" in the full 2025 fiscal year as it looks to steal yet more share from rival Nvidia in the AI arena. AMD learned sales of its China-spec MI308-series accelerators would be subject to new licensing agreements restricting their sale to China and other nations of concern late last month. "While we face some headwinds from the dynamic macro and regulatory environment, including the recently announced export controls for instinct, MI308 shipments to China, we believe they are more than offset by the powerful tailwinds from our leadership product portfolio," Su said on the call while going over AMD's latest financial figures, the ones covering its first quarter of 2025. Had it not been for the export controls, AMD's forecast for its second quarter of the year might have looked quite a bit rosier, climbing 9.4 percent sequentially and 47 percent year-over-year to an estimated $8.1 billion. Alas, the latest salvo in the US-China trade war will shave about $700 million off those anticipated Q2 revenues, which it now expects to come in at $7.4 billion give or take $300 million or so. "Sequentially, we expect the client and gaining segment revenue to increase by double digit percentage; embedded segment revenue to be flat-ish; and we expect datacenter segment revenue to decrease due to the exclusion of MI308 revenue," CFO Jean Hu told analysts on the call. While less than ideal, Hu emphasized that at the midpoint of the forecast, Q2 revenue growth would still top 27 percent compared to the same time last year. Most of the remaining $800 million in revenues lost to unrealized MI308 GPU sales in China are expected to come out in Q3 with "very little in Q4," Su explained. In addition to the expected total loss of $1.5 billion in revenues this fiscal year, the x86 giant had already announced in an SEC filing that it would take a charge of up to $800 million for "inventory, purchase commitments, and related reserves" - this most likely refers to stockpiled chips that it will not be able to sell. In its Q1 earnings statement [PDF] Tuesday, AMD reiterated this, saying it expected to take "approximately $800 million in charges for inventory and related reserves due to the new export controls" in Q2. The situation could be worse. AMD's much-larger rival Nvidia recently revealed it'll book a $5.5 billion charge on account of H20 GPUs it can no longer sell to its Chinese partners. AMD expects its prospects to improve significantly in the second half as the US corp begins shipping its next generation of AI accelerators designed to compete directly with Nvidia's Blackwell generation of GPUs. Initially expected late in 2025, AMD moved up the launch, presumably to get out ahead of Nvidia's newly announced Blackwell Ultra accelerators. As we previously reported, the MI355X promises to deliver peak floating point performance roughly equivalent to that of Nvidia's B200 while also delivering 50 percent more memory capacity at 288GB of HBM3e memory. Oracle, Su said, will be among the first cloud providers to deploy a "multi-billion" cluster of the accelerators alongside its 5th-gen Epyc datacenter processors, and Pollara 400 smartNICs. This higher capacity has allowed AMD to serve larger gen AI models like Meta's Llama 3.1 405B and OpenAI's GPT family of models using fewer resources than comparable Nvidia systems. However, Blackwell Ultra slated to ship later this year, Nvidia will close the gap with 288GB of memory and 50 percent higher dense 4-bit floating point performance. Su also teased its upcoming MI400-based rack-scale systems, which Su suggested would "deliver leadership performance in both inferencing and training," when they arrive in 2026. Up to this point, AMD has lacked a rack-scale architecture to compete with Nvidia's GB200 and GB300 NVL-72 platforms. We expect to get more information on both the MI355X and MI400-series accelerators at AMD's Advancing AI event next month. As for the company's Q1 performance, AMD banked $709 million in profits - up significantly from the year-ago quarter's $123 million - on revenues which grew 36 percent year-on-year to $7.4 billion. This growth, Su said, was once again driven by strong demand across its Epyc, Instinct, and Ryzon product lines. Datacenter sales accounted for the lion's share of AMD's revenue gains during the quarter, with the division generating $3.7 billion, up 57 percent from a year ago, as the biz ramped production of its MI325X accelerators and 5th-gen Epyc CPUs during the quarter. According to Su, AMD will begin production of the latter in the United States later this year at TSMC's Arizona fab site. AMD's Client and Gaming segment revenues, meanwhile, jumped 28 percent to $2.9 billion in the first quarter. Of that, Ryzen processor and SoC sales accounted for the majority of that at $2.3 billion. Gaming revenues, on the other hand, slid a precipitous 30% from last year to $647 million on weak demand for custom SoCs used in Sony, Microsoft, and Valve game consoles. Finally, the embedded compute segment, which includes FPGAs and adaptive-SoCs, pulled in $823 million during the quarter, down 3 percent from this time last year. ®

Chipmaker AMD forecasts second-quarter revenue above estimates

May 6 (Reuters) - AMD (AMD.O), opens new tab forecast second-quarter revenue above Wall Street estimates on Tuesday, betting on robust demand for its artificial-intelligence chips even as trade tensions cloud the global economic outlook. Shares of the Santa Clara, California-based company rose 6% in extended trading. The optimistic forecast from AMD could help reinforce investor confidence in its ability to compete against Nvidia (NVDA.O), opens new tab, after concerns around a trailing position in the lucrative AI market had sent its shares down more than 17% this year. Demand remains robust for its advanced processors that power complex AI systems for Microsoft (MSFT.O), opens new tab, Meta Platforms (META.O), opens new tab and other customers, with cloud giants reinforcing hefty spending plans for building AI infrastructure. The company expects revenue of about $7.4 billion for the second quarter, plus or minus $300 million, compared with analysts' average estimate of $7.25 billion, according to data compiled by LSEG. AMD said last month it expects charges of up to $800 million due to the latest curbs by the Trump administration on exports of its advanced processors to Beijing. Adjusted gross margin for the second quarter is estimated to be 43% inclusive of the charge and approximately 54% excluding it. Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona and Matthew Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

AMD earnings beat as overall sales surge by 36%

Lisa Su, CEO of AMD, attends the Artificial Intelligence Action Summit at the Grand Palais in Paris, Feb. 10, 2025. Advanced Micro Devices reported first fiscal quarter earnings on Tuesday that topped expectations, and provided a strong forecast for current quarter revenue. Shares of AMD rose in extended trading more than 4%. Here's how the chipmaker did versus LSEG expectations for the quarter ending March 29: For the current quarter, AMD expects about $7.4 billion in sales with a gross margin of 43% versus Wall Street estimates for earnings of 86 cents adjusted on $7.25 billion in sales. AMD's forecast also included $800 million in costs that the company said it would incur because the U.S. limited the export of some of the company's artificial-intelligence chips during the quarter. The company reported net income of $709 million, or 44 cents per diluted share, versus net income of $123 million, or 7 cents per share, during the year-earlier period. Revenue grew 36% on an annual basis. AMD is the second-place server central processing unit vendor, behind Intel, but its Epyc line of processors has been taking market share in recent years. The company is also the closest competitor to Nvidia for "big GPUs," or graphics processing units. Those are the kind of chips that are deployed in data centers by the thousands for building and deploying generative AI. It did $5 billion in AI GPU sales in the company's fiscal 2024. Both are reported in the company's data center segment, which came in at $3.7 billion in sales, topping a StreetAccount estimate. Data center sales were up 57% on an annual basis, which the company attributed to demand for both Epic processors as well as its Instinct GPUs. The company's other major segment, Client and Gaming, includes chips for consumer devices such as laptops, gaming PCs, and game consoles. The overall segment rose 28% on an annual basis to $2.9 billion. AMD said that sales for its laptop and PC chips, which it calls client revenue, surged 68% year-over-year because of strong demand for chips called Zen 5 the company released last summer. Gaming sales, however, declined 30% on an annual basis, which the company attributed to a decrease in console chip revenue. AMD's embedded segment, which is mostly sales from the company's 2022 acquisition of Xilinx, declined 3% on an annual basis to $823 million.

Chips restrictions to China cloud strong AMD results

AMD results showed a strong quarter one, with revenues up 36pc year-on-year, but were overshadowed by a warning on sales losses due to new China export restrictions. US semiconductor giant and Nvidia's biggest AI chip rival, Advanced Micro Devices (AMD) has become the latest US tech player to announce strong results for the first quarter but add a cautionary note regarding quarter two, due to the current tariffs and export restrictions to China. The company reported strong revenue of $7.4bn for the first quarter of 2025, up by 36pc compared to the same period last year. "We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data centre and AI momentum," said Dr Lisa Su, AMD chair and CEO. "Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution." However, the chip giant, while forecasting similar revenues for the next quarter, also cautioned that "actual results could differ materially depending on market conditions". It said it was looking at $800m in charges for inventory and related reserves "due to the new export controls." The strong results initially boosted AMD's share price, with a rise of nearly 7pc, but a decline in share price followed after guidance was issued that US restrictions on sales to China will cost AMD $1.5bn in revenue this year. According to Bloomberg, on the earnings call the company said that guidance stems from an export restriction imposed in April that targeted AMD's MI308 chips, widely used by data centres. As a result, data centre revenue will decline this quarter it said, due to a $700m reduction in sales of that chip. Overall Dr Lisa Su was upbeat on the earnings call, and particularly optimistic about its sales of AI chips, but its another reminder that otherwise strongly performing tech companies will be inevitably hit by both tariffs on components coming in from China, and regulations on exports of product to China. AMD's Irish site, formerly operated by Xilinx, was first established in 1994 with a focus on manufacturing, operations support, engineering and administration services. AMD acquired Xilinx for $35bn in 2022, making Ireland home to one of AMD's largest R&D sites in Europe. In 2023, the US semiconductor giant announced plans to invest up to $135m in Ireland over four years, set to create almost 300 new jobs at the site. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.

AMD Stock Surges on Strong Earnings and Outlook, Driven by 'AI Momentum'

Advanced Micro Devices (AMD) delivered first-quarter earnings that topped analysts' estimates as sales from its data center segment surged, sending shares higher in extended trading Tuesday. The chipmaker reported revenue of $7.44 billion, up 36% year-over-year and ahead of the analyst consensus from Visible Alpha. Adjusted net income of $1.57 billion, or 96 cents per share, rose from $1.01 billion, or 62 cents per share, a year earlier, above Wall Street's estimates. The gains came as AMD's data center sales climbed 57% to $3.67 billion, exceeding expectations. "We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum," said AMD CEO Lisa Su. AMD shares jumped close to 5% in after-hours trading. The stock was down about 18% for 2025 through Tuesday's close. Looking ahead, AMD projected second-quarter revenue of $7.1 billion to $7.7 billion. Analysts had called for $7.3 billion. The company warned its results would be affected by charges of roughly $800 million related to tightening restrictions on sales of its chips to China. Competitor Nvidia (NVDA) has also said it expects a potential $5.5 billion charge related to limits on exports of its H20 chip. "Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution positioning us well for strong growth in 2025," Su said.

Why Some Wall Street Analysts Are Concerned About AMD's AI Revenue Despite Strong Results

Advanced Micro Devices (AMD) reported first-quarter results that beat Wall Street's expectations, but some Wall Street analysts expressed concerns tightening export restrictions to China could harm AI revenue going forward. Jefferies dropped its price target to $100 from $120, while maintaining a "hold" rating for the stock. "AI growth is the primary metric for the stock and on that front estimates move lower," the analysts said. On the company's earnings call, CFO Jean Hu said AMD would take a $1.5 billion revenue hit in 2025 related to limits on sales of its chips to China. Overall, AMD projected second-quarter revenue of $7.1 billion to $7.7 billion. Analysts had called for $7.3 billion. AMD shares were up about 1% at just under $100 in premarket trading Wednesday, close to Jefferies' updated target. Citi analysts maintained a similar $100 target, noting that while AMD's AI revenue is expected to fall in the first half of the year, "almost every other company has its AI business increasing." Meanwhile, Wedbush moved higher to $120 from $115 and UBS jumped to a more bullish $155 from $150. Wedbush pointed to the success of AMD's compute and gaming segments, which "significantly outperformed" in the quarter.

AMD forecasts $1.5 billion revenue hit from US curbs on China chip exports

Advanced Micro Devices on Tuesday forecast a $1.5 billion hit to revenue this year due to new US curbs on chips, which require the company to obtain a license to ship advanced artificial-intelligence processors to China. But it issued a second-quarter revenue forecast that topped Wall Street estimates, which analysts attributed to customers buying more chips ahead of tariffs. Its shares were last up about 1% in after-hours trading after rising as much as 6% and falling as much as 3.5%. Under the Biden and Trump administrations, the U.S. has pursued increasingly aggressive curbs on AI chip exports to China. These controls are aimed at hobbling China's ability to build advanced AI models and applications that, according to the U.S., could have national security implications. AMD CEO Lisa Su said on a conference call on Tuesday that most of the impact from the curbs would affect the second and third quarters this year. Despite the new controls, Su said she expects AI chip revenue from the company's data center business to grow this year by "strong double digits." "It's certainly a headwind, but one which we think is well contained given everything else that we have going on," she said. In April, AMD said it would record an $800 million charge from the new U.S. tariffs on chip exports to China. On Tuesday, it forecast adjusted gross margin of 43%, which represents an 11 percentage-point drop from the gross margin excluding the charge. Like AMD, Nvidia has also warned Wall Street that it will now need an export license to China. Nvidia faces a $5.5 billion charge as a result. China accounts for roughly a quarter of AMD's total revenue, and the impact of the export controls would shave nearly 5% off the Wall Street forecast for revenue of $31.03 billion per LSEG data. AMD finance chief Jean Hu said in the conference call following the results that the $1.5 billion revenue hit for 2025 was due to the new round of export controls from April. "The subtext is hard to miss; big hyperscalers would rather accelerate purchase order dates than risk export-license roulette once the latest China rules bite," said Michael Schulman, chief investment officer at Running Point Capital. "The flip side is that, once those safety-stock closets are full, Q3 could feel like the morning after a Red Bull binge ... keep one eye on backlog burn rates and another on Washington's next tariff tweet," he said. Growth despite China Still, the optimistic forecast shows that demand for AMD's advanced processors remains strong as they power complex AI systems for Microsoft, Meta Platforms and other customers. These cloud giants recently reinforced hefty spending plans for building AI infrastructure. On the conference call, Su said the company had not seen a lot of "tariff-related activity" in the first quarter. The company expects revenue of about $7.4 billion for the second quarter, plus or minus $300 million, compared with analysts' average estimate of $7.25 billion. In February, the company steered away from a practice of giving a specific sales forecast for its AI chips, but Su had said AMD expects "tens of billions" of dollars in sales "in the next couple of years." AMD reported data center sales jumped 57% to $3.7 billion, which topped estimates of $3.62 billion. The company includes much of its AI hardware in its data center segment. Total revenue jumped a better-than-expected 36% to $7.44 billion. Adjusted profit of 96 cents a share was ahead of estimates by 2 cents a share. Chip maker Marvell Technology and server maker Super Micro both disappointed investors on Tuesday. Marvell pushed back a planned Investor Day to a later date in calendar 2026, citing the uncertain economy, and Super Micro trimmed its 2025 revenue forecast, adding to concerns about its position in the AI market. Marvell shares were down 4.5% after hours and Super Micro were down 5%.

AMD Q1 Earnings: Revenue, EPS Beat Driven By Expanding Data Center, AI Momentum, Chipmaker Expects 'Strong Growth' In 2025 - Advanced Micro Devices (NASDAQ:AMD)

Advanced Micro Devices, Inc AMD reported first-quarter financial results Tuesday after the bell. Here's a rundown of the report. Q1 Earnings: AMD reported first-quarter revenue of $7.44 billion, beating analyst estimates of $7.13 billion, according to Benzinga Pro. The chipmaker reported first-quarter adjusted earnings of 96 cents per share, beating analyst estimates of 94 cents per share. Total revenue was up 36% year-over-year. Here's a breakdown of revenue by segment. Data Center revenue: $3.7 billion, up 57% Client revenue: $2.3 billion, up 68% Gaming revenue: $647 million, down 30% Embedded revenue: $823 million, down 3% Gross margin came in at 54% in the quarter. The company reported operating income of $1.8 billion and ended the period with approximately $6.06 billion in cash and cash equivalents and restricted cash. "We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter, driven by strength in our core businesses and expanding data center and AI momentum," said Lisa Su, chair and CEO of AMD. "Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution, positioning us well for strong growth in 2025." Outlook: AMD expects second-quarter revenue of approximately $7.4 billion, plus or minus $300 million. Analysts are currently forecasting second-quarter revenue of $7.24 billion. AMD anticipates a second-quarter non-GAAP gross margin of 43%, which includes an approximate $800 million impact in charges related to inventory due to new export controls, as previously disclosed. AMD executives will further discuss the quarter on a call with investors and analysts at 5 p.m. ET. AMD Price Action: AMD shares were up 4.85% after-hours, trading at $103.40 at the time of publication Tuesday, according to Benzinga Pro. Read Next: Nvidia Risks Losing Up To $10 Billion In Annual Data Center Revenue Amid CapEx Slowdown, China Decoupling, Warns Analyst Photo: courtesy of AMD. AMDAdvanced Micro Devices Inc$103.382.77%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum16.47Growth66.65Quality85.77Value15.19Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

AMD Boosts Spending On Product Road Maps, Go-To-Market For Next 'Growth Arc'

'Despite the uncertain macroeconomic backdrop, our first-quarter performance highlights the strength of our differentiated product portfolio and execution and positions us well for strong growth in 2025,' AMD CEO Lisa Su says in the company's first-quarter earnings call. AMD CEO Lisa Su said the company is "expanding investments" in its product and technology road maps and go-to-market initiatives, among other things, to seize on the next wave of growth opportunities it sees despite economic uncertainty. Su made the comment during AMD's first-quarter earnings call on Tuesday after the firm reported a record $7.4 billion in revenue, down 3 percent from the previous quarter but up 36 percent year over year, made possible by significant growth of its Instinct GPUs and EPYC CPUs for data centers and Ryzen CPUs for PCs. [Related: Intel: 'Fluid Trade Policies' Have Increased Risk Of 'Economic Slowdown'] The strong performance also contributed to AMD's gross margin growing by 2 points year over year to 54 percent, unchanged from the previous quarter, and its operating income growing 57 percent year over year to $1.7 billion, down 12 percent sequentially. AMD's revenue surpassed Wall Street's expectations by $320 million while its earnings of 96 cents per share was 3 cents above analyst estimates. "Despite the uncertain macroeconomic backdrop, our first-quarter performance highlights the strength of our differentiated product portfolio and execution and positions us well for strong growth in 2025," she said. Su said the company is also expanding investments in its full-stack AI software and data-center scale solutions capabilities, the latter of which received a boost by the completion of AMD's $4.9 billion acquisition of ZT Systems in March. "We are also doubling down on our execution to deliver -- and where possible accelerate -- our industry-leading road maps," she said. The increased spending across several key areas was reflected in AMD's first-quarter operating expenses, which grew 28 percent year-over-year and 2 percent sequentially to $2.2 billion. This is expected to grow another 4.5 percent sequentially to roughly $2.3 billion in the second quarter, according to the company's financial outlook. "We view the current environment as a strategic opportunity to further differentiate AMD as we deliver an expanding product portfolio that combines leadership compute and AI capabilities for data centers, edge, PCs, and embedded end devices," Su said. AMD expects to make $7.4 billion in the second quarter, plus or minus $300 million, which would be roughly in line with what it made in the first quarter and a 27.5 percent increase from last year's second quarter. Jean Hu, AMD's CFO, said the company's second-quarter guidance factors in an estimated $800 million hit from the Trump administration's new export restrictions against the Instinct MI309 GPU it had tailored for China based on previous U.S. export rules. In AMD's data center segment, revenue grew 57 percent year over year to $3.7 billion, driven by "strong" demand from hyperscale and enterprise customers on the CPU side. The company saw high demand for its EPYC CPUs from enterprises, both in the cloud, where the number of EPYC-powered instances activated by Forbes 2000 companies more than doubled year-over-year, and on-premises, where CPU sales "grew by a large double digit percent year over year for the seventh straight quarter," according to Su. "We have built significant enterprise momentum over the last few years as our partners expanded the number of EPYC-based platforms to more than 450 and we scaled our joint go-to-market programs," she said. "As a result, EPYC is now deployed by all of the top 10 telecom, aerospace and semiconductor companies, nine of the top 10 automotive, seven of the top 10 manufacturing, and six of the top 10 energy companies on the Forbes 2000," Su added. As for AMD's Instinct GPUs for AI data centers, revenue increased by a "significant double-digit percent year over year," which was driven by shipments of its Instinct MI325X GPUs for new enterprise and cloud deployments," according to the CEO. "Several hyperscalers expanded their use of Instinct accelerators to cover an increasing range of generative AI, search, ranking and recommendation use cases," she said. "We also added multiple tier-one cloud and enterprise customers in the quarter, including one of the largest frontier model developers that is now using Instinct GPUs to serve a significant portion of their daily inference traffic," Su added. To further encourage adoption of AMD's Instinct GPUs, Su said the company has "significantly accelerated" the release cadence for updates to its ROCm AI software stack from a quarterly basis to bi-weekly. These updates now include "ready-to-deploy training and inferencing containers" that "include performance optimizations and support for the latest libraries, kernels and algorithms," she added. AMD started to sample its next-generation MI350 GPUs with multiple customers in the first quarter and is on track to begin production by the middle of this year, according to Su. "Customer interest in the MI350 series is very strong, setting the stage for broad deployment in the second half of this year," she said. As for the next-generation MI400 GPU AMD plans to launch next year, Su said the ZT Systems team is "fully engaged and already co-designing with key customers on rack-level designs optimized" for the architecture. The team is also "working with customers and OEM partners to accelerate time-to-market" for the MI350, she added. In AMD's client and gaming segment, revenue grew 28 percent year over year to $2.9 billion. Client revenue alone grew 68 percent year over year, marking a "fifth consecutive quarter of revenue share gains" for AMD, according to Su. The company also saw record CPU average selling prices "driven by a richer mix of high-end desktop and mobile Ryzen processors," she said. Su said demand for AMD-based commercial PCs was "very strong" in the first quarter, with sell-through of Ryzen Pro processors growing more than 30 percent year over year. This was "driven by end customer wins and an 80 percent increase from 2024 in the number of AMD-powered commercial systems from HP, Lenovo, Dell and Asus," she added. "We closed multiple wins with large auto, energy, healthcare, financial services and telecom companies in the quarter," Su said. Despite any economic headwinds, AMD remains "confident" that the company can "grow client processor revenue well ahead of the market in 2025," according to Su. This is thanks to "expanding adoption of our desktop channel and consumer and commercial notebook portfolio as well as a richer mix," she said. AMD's embedded segment revenue declined 3 percent year over year to $823 million, with Su noting that demand has continued to "recover gradually." "We expect improving demand in the test and measurement, communications and aerospace markets will drive a return to growth in the second half of 2025," she said.

AMD Always Expected Restrictions On Cutting Edge GPU Exports To China, Says Lisa Su -- Working With Trump Administration To Keep US AI Tech Dominant - NVIDIA (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD)

On Tuesday, Advanced Micro Devices AMD CEO Lisa Su said the company is focusing on keeping global customers tied to U.S. AI technologies amid new government rules. What Happened: During AMD's first-quarter earnings call, Su addressed questions about the company's long-term outlook for AI chip sales. Bank of America Securities analyst Vivek Arya asked Su how much of AMD's nearly $500 billion total addressable market (TAM) for AI accelerators is linked to China, given increasing U.S. export restrictions. He also pressed her on the potential impact of new U.S. government rules on the diffusion of AI technologies, which are set to take effect May 15. In response, Su said the company had already accounted for China-related limits in its TAM estimates. See Also: Mark Cuban Slams Amazon For 'Ripping Off American Sellers' As Trump Tariffs Are Predicted To Boost Ecommerce Brands' Profits "We always expected that there would be some amount of what's called limitation on sort of leading edge GPUs going into China," Su said. "So that was factored into our TAM expectation when we talked about $500 billion. I don't think that dramatically changes the TAM." However, Su underscored that the upcoming AI diffusion rules pose a more delicate challenge. "We're very actively working with the government as they're thinking through these rules, and it's a very fine balance that we have to have," she said. Su stressed AMD's commitment to making sure U.S. AI companies, including her own, remain the world's primary technology platforms. "We want to ensure that the rest of the world can really use us as the primary platform," she stated. Why It's Important: Earlier, it was reported that the Donald Trump administration is considering a major revision to the Artificial Intelligence Diffusion, which divides countries into three tiers. Officials are now exploring a shift toward a global licensing system based on bilateral agreements. Get StartedStart Futures Trading Fast -- with a $200 Bonus Join Plus500 today and get up to $200 to start trading real futures. Practice with free paper trading, then jump into live markets with lightning-fast execution, low commissions, and full regulatory protection. Get Started They are also weighing stricter controls by lowering the exemption threshold for chip purchases. Currently, orders below the equivalent of 1,700 Nvidia Corporation NVDA H100 chips do not require an export license and only mandate a notification to authorities. AMD posted first-quarter revenue of $7.44 billion, surpassing analyst expectations of $7.13 billion. Year-over-year, total revenue rose 36%. For the second quarter, AMD projects revenue of around $7.4 billion, with a possible variance of $300 million. This outlook exceeds the current analyst forecast of $7.24 billion. The company also expects a non-GAAP gross margin of 43% for the second quarter, factoring in an estimated $800 million in inventory-related charges tied to new export control regulations, as previously disclosed. Price Action: AMD shares rose 1.72% in after-hours trading, reaching $100.32 at the time of writing, according to Benzinga Pro. According to Benzinga Edge Stock Rankings, AMD holds a growth score in the 66th percentile. Curious how other chipmakers like Nvidia compare? Click here to view the full rankings. Photo Courtesy: jamesonwu1972 On Shutterstock.com Read Next: What Caused Sam Altman-Founded World Network Token To Soar 57% in a Week? What Caused Sam Altman-Founded World Network Token To Soar 57% in a Week? Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AMDAdvanced Micro Devices Inc$100.32-0.27%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum16.47Growth66.65Quality85.77Value15.19Price TrendShortMediumLongOverviewNVDANVIDIA Corp$114.500.60%Market News and Data brought to you by Benzinga APIs

Why AMD Stock Skyrocketed Wednesday Morning Before Losing Ground | The Motley Fool

The semiconductor specialist initially rallied on robust results, but some on Wall Street think the future looks cloudy. Shares of Advanced Micro Devices (AMD -0.11%), commonly referred to as AMD, charged out of the gate on Wednesday, gaining as much as 4.9%. However, investor pessimism soon won out, and as of 11:29 a.m. ET today, the stock was up just 0.4%. The artificial intelligence (AI) chipmaker announced results that beat expectations, but investors eventually focused on the thorns rather than the rose. AMD released its first-quarter results after the market close on Tuesday, and they were surprisingly strong. The company delivered record revenue of $7.4 billion, up 36% year over year, resulting in adjusted earnings per share (EPS) of $0.96, which climbed 55%. To give those numbers context, analysts' consensus estimates were calling for revenue of $7.12 billion and EPS of $0.93, so AMD sailed past expectations. Fueling the robust results was the data center segment, which generated revenue of $3.7 billion, up 57% year over year, driven by demand for the company's AI-centric Epyc central processing units and Instinct graphics processing units. "We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum," said CEO Lisa Su. While investors were initially pleased, Wall Street analysts soon rained on AMD's parade. The company announced that it would take a charge of $1.5 billion in 2025 due to export restrictions on advanced chip sales to China. Analysts at Jefferies noted that "AI growth is the primary metric for the stock, and on that front, estimates move lower." Citigroup analysts had similar concerns, noting that AMD expects a decline in its revenue from AI in the first half of 2025, while "almost every other company has its AI business increasing." Despite the misgivings of some on Wall Street, a long-term outlook historically trumps any short-term market noise. And at just 22 times forward earnings (as of this writing), AMD remains an attractive way to profit from the AI revolution.

AMD Stock Pops on Earnings Beat as AI Chip Revenue Grows by "Significant Double-Digit Percentage" | The Motley Fool

The stock's gain is attributable to the first quarter's revenue and earnings, along with the second-quarter revenue guidance, all coming in higher than Wall Street had expected. Data source: Advanced Micro Devices. GAAP = generally accepted accounting principles. YOY = year over year. Investors should focus on the adjusted numbers, which exclude one-time items. Wall Street was looking for adjusted EPS of $0.93 on revenue of $7.12 billion, so AMD exceeded both expectations. It also surpassed its own revenue guidance of $7.1 billion. (It doesn't issue a profit outlook.) In the quarter, AMD generated cash of $939 million running its operations, up 80% from the year-ago period. It ended the quarter with cash, cash equivalents, and short-term investments of $7.3 billion, up from $5.1 billion in the prior quarter. The company ended the period with long-term debt of $3.2 billion, up from $1.7 billion in the prior quarter. This increase is due to the company issuing about $1.5 billion in debt to help fund its ZT Systems acquisition. In March, AMD closed on its $4.9 billion acquisition of ZT Systems, which it describes as a "leading provider of AI [artificial intelligence] and general-purpose compute infrastructure for the world's largest hyperscale providers." AMD has said this acquisition will enable it to provide end-to-end AI solutions for data centers. Nvidia's massive growth in recent years is due to its expertise in such rack-scale data center AI solutions. Data source: Advanced Micro Devices. *Client and gaming is a single reportable segment; I broke the two parts out for better clarity. YOY = year over year. QOQ = quarter over quarter. Data center growth was driven by robust demand for the company's EPYC central processing units (CPUs) and its Instinct graphics processing units (GPUs), which enable AI capabilities. On the earnings call, CEO Lisa Su expounded on the data center AI business: Turning to our data center AI business, revenue increased by a significant double-digit percentage year over year, as MI325X shipments ramp to support new enterprise and cloud deployments. More than 35 MI300-series platforms are in production from all the leading service providers, supporting the expanding number of Instinct GPU deployments with cloud, enterprise, and AI customers. Client revenue surged 68% year over year primarily due to strong demand for the latest Zen 5 Ryzen processors and a more favorable product mix. This segment sells chips for personal computers (PCs). Gaming revenue was down 30% year over year primarily due to a decrease in semi-custom revenue. For Q2, management guided for: Going into the report, Wall Street had been modeling for Q2 revenue of $7.24 billion, so AMD's outlook beat this estimate. As for the export controls mentioned above, in April, the U.S. government expanded its restrictions on the export of advanced AI chips to China and select other countries, citing national and international security reasons. These controls essentially ban AMD from selling its Instinct MI308 GPU to these markets. Nvidia's H20 GPU, which it had specially designed for the China market, was also affected by the expanded export controls. For full-year 2025, AMD expects the hit to its revenue from the new export regulations to be about $1.5 billion, Hu said on the call. AMD turned in great first-quarter results. It's a particularly positive sign that adjusted EPS growth remains notably more robust than revenue growth, reflecting the company's expanding profit margin. Second-quarter revenue growth guidance of 27% is very solid, especially given the loss of sales of the MI308 chip to the Chinese market.

AMD Earnings: Data Center Shines Again | The Motley Fool

AMD beat expectations for revenue and earnings per share in the first quarter thanks to strong demand for data center products and solid growth from its PC business segment. Overall revenue jumped 36% year over year to $7.4 billion, marking the best first quarter in AMD's history. Data center revenue surged 57% year over year to $3.7 billion, driven by demand for EPYC server CPUs and Instinct AI accelerators. AMD didn't disclose AI accelerator sales in its earnings release, although the company may provide more details during the earnings call. AMD previously declined to provide specific guidance for AI accelerator sales in 2025. Rather, the company expects "strong double-digit growth." AMD combined its client computing and gaming segments starting in the first quarter. Client and gaming revenue jumped 28% year over year, with CPU-related revenue rising 68% and gaming-related revenue tumbling by around 30%. The new Radeon 9070 series graphics cards weren't enough to offset declining sales of game console chips. The embedded segment is starting to look better, with revenue down just 3% year over year. End-market demand remains mixed. Shares of AMD were trading up about 5% in early after-hours trading on Tuesday soon after the first-quarter report was released. The company beat expectations across the board and put up strong numbers in the data center and client PC businesses. The lack of AI accelerator sales figures didn't deter investors, although any sign of slowing demand that surfaces in the earnings call could change the story. AMD management said it expects the company to generate revenue between $7.1 billion and $7.7 billion in the second quarter, up 28% year over year at the midpoint. The company expects its adjusted gross margin to sink to 43% due to a previously disclosed $800 million charge related to AI chip exports. AMD saw strong demand for its Ryzen PC CPUs and EPYC server CPUs in the first quarter, but both businesses are exposed to U.S. tariff policy, both directly due to higher prices for end products and indirectly due to a potential economic slowdown. While AMD's second-quarter outlook was good enough to push up the stock in after-hours trading, investors should look to the earnings call for more details on how the macroeconomic environment is impacting AMD.

Advanced Micro Devices guidance, Q1 results top estimates; shares jump By Investing.com

Investing.com - Advanced Micro Devices jumped in after-hours trade on Tuesday after reporting strong current-quarter guidance and better-than-expected Q1 results as AI-led data center demand eased the impact from the ongoing ban on chip sales to China. Advanced Micro Devices Inc (NASDAQ:AMD) jumped more than 5% in afterhours following the report. AMD announced earnings per share of $0.96 on revenue of $7.44 billion. Analysts polled by Investing.com anticipated EPS of $0.95 on revenue of $7.11B. Gross margin climbed 3% to 50% in Q1 from the same period a year earlier. The company's data center segment continued to soak up AI demand, with revenue up 57% to $3.7B in Q1 from a year earlier, driven by sales of its CPUs, used in servers, and its GPU, used in data center and AI infrastructure. For Q2, AMD expects revenue to be approximately $7.4B, plus or minus $300 million, beating analyst estimates of $7.24B

AMD forecasts Q2 revenue above estimates, despite new US chip curbs on China exports

(Reuters) -Advanced Micro Devices forecast second-quarter revenue above Wall Street estimates on Tuesday, in part because of the global thirst for its artificial-intelligence chips even as trade tensions clouded its ability to sell into the Chinese market. Shares of the Santa Clara, California-based company were up 4.7% in extended trading. Due to an $800 million charge from new U.S. curbs on chip exports to China, AMD forecast adjusted gross margin of 43%, which represents an 11 percentage-point drop excluding the charge. The optimistic forecast from AMD could help reinforce investor confidence in its ability to compete against Nvidia, after concerns around a trailing position in the lucrative AI market had sent its shares down more than 17% this year. Demand remains robust for its advanced processors that power complex AI systems for Microsoft, Meta Platforms and other customers, with cloud giants reinforcing hefty spending plans for building AI infrastructure. The company expects revenue of about $7.4 billion for the second quarter, plus or minus $300 million, compared with analysts' average estimate of $7.25 billion, according to data compiled by LSEG. In February, the company steered away from a longstanding practice of giving a specific sales forecast for its AI chips, but CEO Lisa Su had said AMD expects "tens of billions" of dollars in sales "in the next couple of years." AMD reported first-quarter net profit of 96 cents a share, adjusted for stock compensation among other things. Analysts had expected adjusted earnings of 94 cents a share. The company recorded revenue of $7.44 billion, beating estimates of $7.13 billion. "We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum," Su said in a statement. (Reporting by Arsheeya Bajwa in Bengaluru and Max A. Cherney in San Francisco; Editing by Alan Barona and Matthew Lewis)

Chipmaker AMD forecasts second-quarter revenue above estimates

(Reuters) -AMD forecast second-quarter revenue above Wall Street estimates on Tuesday, betting on robust demand for its artificial-intelligence chips even as trade tensions cloud the global economic outlook. Shares of the Santa Clara, California-based company rose 6% in extended trading. The optimistic forecast from AMD could help reinforce investor confidence in its ability to compete against Nvidia, after concerns around a trailing position in the lucrative AI market had sent its shares down more than 17% this year. Demand remains robust for its advanced processors that power complex AI systems for Microsoft, Meta Platforms and other customers, with cloud giants reinforcing hefty spending plans for building AI infrastructure. The company expects revenue of about $7.4 billion for the second quarter, plus or minus $300 million, compared with analysts' average estimate of $7.25 billion, according to data compiled by LSEG. AMD said last month it expects charges of up to $800 million due to the latest curbs by the Trump administration on exports of its advanced processors to Beijing. Adjusted gross margin for the second quarter is estimated to be 43% inclusive of the charge and approximately 54% excluding it. (Reporting by Arsheeya Bajwa in Bengaluru; Editing by Alan Barona and Matthew Lewis)

AMD forecasts $1.5 billion revenue impact from US curbs on China chip exports

(Reuters) - Advanced Micro Devices on Tuesday forecast it would suffer a $1.5 billion impact on its revenue this year due to new U.S. curbs on chips, which require it to obtain a license to ship advanced artificial-intelligence processors to China. Shares of AMD were down about 1% in extended trading after initially rising 6% after the company released quarterly results. Due to an $800 million charge from new U.S. curbs on chip exports to China, AMD forecast adjusted gross margin of 43%, which represents an 11 percentage-point drop excluding the charge. The charge will shave roughly 5% off the Wall Street forecast for revenue of $31.03 billion and most of the impact will be felt in the second half of the year. Like AMD, Nvidia has also warned Wall Street that it will now need an export license to China for a chip tuned to comply with a raft of restrictions imposed by the U.S. Nvidia faces a $5.5 billion charge as a result, the company said in a securities filing. Nvidia has not yet disclosed what portion of its revenue the charge will impact. China accounts for more than 24% of AMD's revenue. Despite the challenges related to U.S.-China trade tensions, AMD issued a second-quarter revenue forecast that topped Wall Street estimates. The optimistic forecast could help reinforce investor confidence in the company's ability to compete against Nvidia, though analysts said it partially reflected frenzied customer buying to gobble up inventory ahead of potential U.S. tariffs. On a conference call, AMD CEO Lisa Su said the company had not seen a lot of "tariff-related activity" in the first quarter. Synovus Trust portfolio manager Dan Morgan said: "There's the potential that people could be buying ahead, anticipating that there could be additional tariffs going forward on PC chips." Demand for AMD's advanced processors remains strong as such chips that power complex AI systems for Microsoft, Meta Platforms and other customers, with cloud giants reinforcing hefty spending plans for building AI infrastructure. The company expects revenue of about $7.4 billion for the second quarter, plus or minus $300 million, compared with analysts' average estimate of $7.25 billion, according to data compiled by LSEG. The better-than-expected forecast is a result of frenzied customer buying in order to stockpile inventory ahead of U.S. tariffs, according to Summit Insights analyst Kinngai Chan. In February, the company steered away from a longstanding practice of giving a specific sales forecast for its AI chips, but Su had said AMD expects "tens of billions" of dollars in sales "in the next couple of years." AMD reported data center sales jumped 57% to $3.7 billion, which topped estimates of $3.62 billion. The company includes much of its AI hardware in its data center segment. Chip maker Marvell Technology and server maker Super Micro both disappointed investors on Tuesday afternoon. Marvell pushed back a planned Investor Day until calendar 2026, citing the uncertain economy, and Super Micro trimmed its 2025 revenue forecast, adding to concerns about its position in the AI market. Marvell shares dropped 6% after hours and Super Micro fell 4%. According to Bob O'Donnell, chief analyst of Technalysis Research, AMD continues to gain share in AI data center chips, which include its central processing units, which do not receive as much attention as graphics processing units used for AI. The company reported first-quarter net profit of 96 cents a share, adjusted for stock compensation among other things. Analysts had expected adjusted earnings of 94 cents a share. Revenue jumped 36% to $7.44 billion, beating estimates of $7.13 billion. "We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum," Su said in a statement. (Reporting by Arsheeya Bajwa in Bengaluru and Max A. Cherney in San Francisco; Editing by Alan Barona, Sayantani Ghosh and Matthew Lewis)

AMD forecasts $1.5 billion revenue hit from US curbs on China chip exports

(Reuters) -Advanced Micro Devices on Tuesday forecast a $1.5 billion hit to revenue this year due to new U.S. curbs on chips, which require the company to obtain a license to ship advanced artificial-intelligence processors to China. But it issued a second-quarter revenue forecast that topped Wall Street estimates, which analysts attributed to customers buying more chips ahead of tariffs. Its shares were last up about 1% in after-hours trading after rising as much as 6% and falling as much as 3.5%. Under the Biden and Trump administrations, the U.S. has pursued increasingly aggressive curbs on AI chip exports to China. These controls are aimed at hobbling China's ability to build advanced AI models and applications that, according to the U.S., could have national security implications. AMD CEO Lisa Su said on a conference call on Tuesday that most of the impact from the curbs would affect the second and third quarters this year. Despite the new controls, Su said she expects AI chip revenue from the company's data center business to grow this year by "strong double digits." "It's certainly a headwind, but one which we think is well contained given everything else that we have going on," she said. In April, AMD said it would record an $800 million charge from the new U.S. tariffs on chip exports to China. On Tuesday, it forecast adjusted gross margin of 43%, which represents an 11 percentage-point drop from the gross margin excluding the charge. Like AMD, Nvidia has also warned Wall Street that it will now need an export license to China. Nvidia faces a $5.5 billion charge as a result. China accounts for roughly a quarter of AMD's total revenue, and the impact of the export controls would shave nearly 5% off the Wall Street forecast for revenue of $31.03 billion per LSEG data. AMD finance chief Jean Hu said in the conference call following the results that the $1.5 billion revenue hit for 2025 was due to the new round of export controls from April. "The subtext is hard to miss; big hyperscalers would rather accelerate purchase order dates than risk export-license roulette once the latest China rules bite," said Michael Schulman, chief investment officer at Running Point Capital. "The flip side is that, once those safety-stock closets are full, Q3 could feel like the morning after a Red Bull binge ... keep one eye on backlog burn rates and another on Washington's next tariff tweet," he said. GROWTH DESPITE CHINA Still, the optimistic forecast shows that demand for AMD's advanced processors remains strong as they power complex AI systems for Microsoft, Meta Platforms and other customers. These cloud giants recently reinforced hefty spending plans for building AI infrastructure. On the conference call, Su said the company had not seen a lot of "tariff-related activity" in the first quarter. The company expects revenue of about $7.4 billion for the second quarter, plus or minus $300 million, compared with analysts' average estimate of $7.25 billion. In February, the company steered away from a practice of giving a specific sales forecast for its AI chips, but Su had said AMD expects "tens of billions" of dollars in sales "in the next couple of years." AMD reported data center sales jumped 57% to $3.7 billion, which topped estimates of $3.62 billion. The company includes much of its AI hardware in its data center segment. Total revenue jumped a better-than-expected 36% to $7.44 billion. Adjusted profit of 96 cents a share was ahead of estimates by 2 cents a share. Chip maker Marvell Technology and server maker Super Micro both disappointed investors on Tuesday. Marvell pushed back a planned Investor Day to a later date in calendar 2026, citing the uncertain economy, and Super Micro trimmed its 2025 revenue forecast, adding to concerns about its position in the AI market. Marvell shares were down 4.5% after hours and Super Micro were down 5%. (Reporting by Arsheeya Bajwa in Bengaluru and Max A. Cherney in San Francisco; Editing by Alan Barona, Sayantani Ghosh and Matthew Lewis)