AMD posts better than anticipated Q1 earnings, stock jumps on strong Q2 outlook
AMD (AMD) announced its first quarter earnings Tuesday, beating expectations on the top and bottom lines and providing a better than expected Q2 outlook.
Shares rose more than 5% on the news.
For the quarter, AMD saw adjusted earnings per share (EPS) of $0.96 on revenue of $7.4 billion, ahead of analysts' expectations of $0.94 on revenue of $7.1 billion, based on Bloomberg consensus estimates. The company reported EPS of $0.62 and revenue of $5.4 billion in the same quarter last year.
The company also said it anticipates Q2 revenue of between $7.1 billion and $7.7 billion. Analysts were anticipating $7.2 billion.
'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,' AMD CEO Lisa Su said in a statement.
AMD's announcement follows rival Intel's (INTC) report, which saw the company beat on the top and bottom lines but issue lighter-than-anticipated revenue guidance in the second quarter. At the time, Intel CFO David Zinsner blamed the 'current macro environment' for creating 'elevated uncertainty across the industry.'
Nvidia (NVDA) will report its earnings on May 28.
AMD's Data Center segment revenue topped $3.7 billion, versus expectations of $3.6 billion. The segment generated $2.3 billion in Q1 last year.
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In April, AMD, like Nvidia (NVDA), announced that the Trump administration instituted tighter export controls on AI chips destined for China. The move effectively cuts off AMD's ability to ship its MI308 AI processor to the region, and, according to the company, might result in as much as an $800 million charge on inventory, purchase commitments, and related reserves.
AI chip companies are also staring down the government's AI diffusion rules, which would require certain countries to acquire special licenses to gain access to a limited number of US AI chips.
Shares of AMD are off 18% year to date and 36% over the last 12 months. Nvidia is down 15% year to date, but up 22% over the last year.
AI stocks took a major hit over the past few months on fears that the trade has been overhyped. DeepSeek's January announcement that it managed to produce high-performance AI models using less than top-of-the-line chips further hammered chip stocks.
Lisa Su, chairwoman and CEO of Advanced Micro Devices (AMD), delivers the opening keynote speech at Computex 2024, Taiwan's premier tech expo, in Taipei on June 3, 2024. (Photo by I-Hwa CHENG / AFP) (Photo by I-HWA CHENG/AFP via Getty Images)
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I-HWA CHENG via Getty Images
AMD's Client segment, which includes revenue from the sale of laptop and desktop chips, saw $2.3 billion in revenue for the quarter. Analysts were anticipating $2 billion in revenue, up from $1.3 billion in Q1 last year.
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