Latest news with #AdvancedMicroDevices'
Yahoo
15-05-2025
- Business
- Yahoo
Advanced Micro Devices (NasdaqGS:AMD) Expands Share Buyback Plan By US$6 Billion
Advanced Micro Devices recently increased its equity buyback plan by $6 billion, raising the total authorization to $14 billion. This decision comes alongside the company's Q1 earnings report, which showed significant growth in both sales and net income, reinforcing AMD's financial robustness. In the context of a broader market uptrend of 5.1% over the past week and an 11% increase over the past year, AMD's stock price movement of approximately 25% upward in the last month was likely supported by these financial strides. The new partnership with HUMAIN to build global AI infrastructure and the launch of the EPYC 4005 Series processors further positions AMD in a favorable light. These developments align with the Nasdaq Composite's ongoing winning streak, suggesting that AMD's recent announcements and financial performance have added weight to its positive price movements. Buy, Hold or Sell Advanced Micro Devices? View our complete analysis and fair value estimate and you decide. Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit. Advanced Micro Devices' recent expansion of its equity buyback plan by US$6 billion is likely to reinforce investor confidence and could contribute to supporting its stock value, especially in light of its strong Q1 earnings performance. Over the longer term, AMD's stock has seen impressive gains, with a total return of 108.76% over five years. In comparison, over the past year, AMD's stock experienced a significant rise, although it slightly underperformed relative to the broader US semiconductor industry, which saw a notable annual return. This renewed buyback plan, along with substantial growth in sales and net income, has the potential to positively impact the company's revenue and earnings forecasts as analysts accommodate these financial enhancements. However, challenges such as regulatory barriers and fierce competition, as highlighted in the narrative, remain significant hurdles. The share price appreciation of around 25% over the last month places it closer to the consensus price target of $126.29, a modest discount to AMD's evaluated market value, suggesting room for further evaluation of strategic positioning and growth prospects. Evaluate Advanced Micro Devices' prospects by accessing our earnings growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:AMD. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Entrepreneur
15-05-2025
- Business
- Entrepreneur
AMD's AI-Powered Stock Price Rally Just Shifted Gears
Advanced Micro Devices' long-awaited AI stock price rally is underway following a new deal announcement and an increase to the buyback. This story originally appeared on MarketBeat Advanced Micro Devices' (NASDAQ: AMD) long-awaited AI-powered stock price rally is here. The stock is rocketing higher after a string of good news, including reduced trade tensions with China, a new deal with Saudi Arabia's HUMAIN, and a new $6 billion share buyback authorization. The authorization, a sign of the board's confidence in future free cash flow, is worth an additional $6 billion on top of the $4 billion left under the existing. The total $10 billion in potential share repurchases is worth about 5.5% of the market cap in mid-May and a potentially strong tailwind. It is potentially strong because repurchase activity in 2024 failed to reduce the count, stock-based compensation awards more than offset their impact and may do so again in 2025. However, the first quarter results included a slight reduction in the diluted count that may persist and even accelerate as the year progresses. Other figures that investors should be watching are the cash, assets, and equity, which are all increasing. The company's Q1 balance sheet highlights included a 50% YOY increase in cash, increased receivables and inventory, steady debt levels, and reduced liability. The net result was a 5% increase in equity and an expectation for equity gains to accelerate as the year progresses. The outlook for the year was amplified by recent news, including a $10 billion deal with HUMAIN. HUMAIN, Saudi Arabia's newly formed AI enterprise, inked a $10 billion deal for AI infrastructure backed by President Trump. The deal involves 500 megawatts of AI compute capacity using AMD's most advanced semiconductor technology and is expected to play out over five years. The impact on AMD's outlook is significant and worth 3100 basis points of revenue growth relative to the 2025 consensus forecast reported by MarketBeat. Analysts Cheer Eye-Opening Moment for AI Investors The analyst's response to the Saudi news was overwhelmingly bullish. Bank of America analysts view Advanced Micro Devices as a top-winner alongside NVIDIA (NASDAQ: NVDA), while the Dan Ives-led Wedbush team called it an eye-opening moment. They view the deal and the others announced alongside it as a clear signal that Saudi Arabia will be a significant player in AI for years to come. Saudi Arabia's AI investment could top $1 trillion within years and open the door to expanding possibilities for all things AI. Ultimately, the factor that matters is that the analyst group is lifting price targets again and leading to the high-end range, a gain of 50% relative to mid-May trading levels. Advanced Micro Devices' upcoming Q2 earnings release, scheduled for late July, will be a market-moving event for this stock. Not only is there a high probability that the company will outperform its consensus estimates for revenue and earnings, but the guidance will likely be strong. Demand was strong before the Saudi deal and will only increase in its wake. The risk is China. The curb on exports to China will impact the results, but may be limited. Saudi Arabia will make up for the lost revenue. Advanced Micro Devices Stock Price Reaches a Critical Pivot Point Advanced Micro Devices' stock price advanced by 15% within two days of the HUMAIN announcement and will likely continue to move higher. However, there is a risk of resistance at a critical pivot point, including the long-term 30-week EMA, representing institutional buy-and-hold investors. If the market is unable to get above the level quickly, there is a risk that AMD's share price will remain range-bound at current levels. A move above the 30-week EMA would be a bullish sign, indicating improved market sentiment and an all-clear to investors. The market for AMD stock would likely move up to $147.50 soon after and potentially continue rising through the year's end. Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now... See The Five Stocks Here
Yahoo
13-05-2025
- Business
- Yahoo
Advanced Micro Devices First Quarter 2025 Earnings: Beats Expectations
Revenue: US$7.44b (up 36% from 1Q 2024). Net income: US$709.0m (up 476% from 1Q 2024). Profit margin: 9.5% (up from 2.2% in 1Q 2024). The increase in margin was driven by higher revenue. EPS: US$0.44 (up from US$0.076 in 1Q 2024). We check all companies for important risks. See what we found for Advanced Micro Devices in our free report. All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue exceeded analyst estimates by 4.5%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Semiconductor industry in the US. Performance of the American Semiconductor industry. The company's shares are up 7.5% from a week ago. While it's very important to consider the profit and loss statement, you can also learn a lot about a company by looking at its balance sheet. We have a graphic representation of Advanced Micro Devices' balance sheet and an in-depth analysis of the company's financial position. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
09-05-2025
- Business
- Yahoo
AMD Earnings: Data Center Shines Again
AMD beat expectations in the first quarter, with strong growth in the data center segment. Client PC revenue also surged, although the gaming business continued to struggle. No details were provided for AI accelerator sales, and the company expects a major hit to gross margin in the second quarter due to export controls. 10 stocks we like better than Advanced Micro Devices › Here's our initial take on Advanced Micro Devices' (NASDAQ: AMD) fiscal 2025 first-quarter financial report. Metric Q1 2024 Q1 2025 Change vs. Expectations Revenue $5.47 billion $7.44 billion +36% Beat Earnings per share (adjusted) $0.62 $0.96 +55% Beat Data center revenue $2.34 billion $3.67 billion +57% n/a Gross margin (adjusted) 52% 54% +2 pp n/a 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. Full earnings report Investor relations page Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $0!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $0!* Now, it's worth noting Stock Advisor's total average return is 0% — a market-crushing outperformance compared to % for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Timothy Green has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy. AMD Earnings: Data Center Shines Again was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
Advanced Micro Devices (NasdaqGS:AMD) Reports Strong Q1 Earnings With US$7.4 Billion Sales
Advanced Micro Devices showcased a notable 15% price increase over the past month, in line with impressive first-quarter earnings that exceeded Wall Street's expectations amid strong AI-related demand. The company reported a robust increase in revenue and net income, further supported by optimistic guidance for the upcoming quarter. Amid a mixed market environment with broader indexes showing slight variances due to tariff news and Fed decisions, AMD's solid performance and ongoing advancements in AI and new product releases likely added weight to its upward trajectory, contrasting the flat performance of some other companies. Buy, Hold or Sell Advanced Micro Devices? View our complete analysis and fair value estimate and you decide. NasdaqGS:AMD Revenue & Expenses Breakdown as at May 2025 The end of cancer? These 23 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's. The recent news driving Advanced Micro Devices' (NasdaqGS:AMD) 15% share price increase is likely to bolster perceptions surrounding its AI potential, as highlighted in the narrative. The MI350 series and EPYC processors are expected to invigorate data center revenue, aligning with the company's recent earnings beat. The impact on revenue forecasts is noteworthy, as analysts anticipate AMD's revenue to grow by 10.2% annually over the next three years despite certain market headwinds. Meanwhile, increased investments in AI suggest sustained earnings growth, though potential price pressures may affect profit margins. AMD's shares delivered an 83.44% total return over five years, providing a robust context for evaluating its recent 15% rise. This longer-term growth contrasts with a 1-year underperformance against the broader U.S. market and the U.S. semiconductor industry, which posted gains of 7.2% and 8.8%, respectively, over the same period. Such historical performance underscores AMD's capacity to rebound, supported by AI developments and strategic partnerships. In relation to analyst expectations, AMD's current share price remains at a discount of around 35.85% to the consensus price target of US$133.98. The favorable guidance and improved market positioning through new product developments give credence to revised upward forecasts, with the price target offering a potentially optimistic outlook relative to its past stock performance. However, maintaining cautious optimism is essential due to identified risks, such as over-reliance on the Data Center segment, which comprises half of AMD's annual revenue. Examine Advanced Micro Devices' past performance report to understand how it has performed in prior years.
