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Yahoo
28-05-2025
- Business
- Yahoo
HSBC Upgrades Advanced Micro Devices (AMD) Stock to Hold, Lifts PT
On May 28, HSBC upgraded the rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) stock from Sell to Hold, increasing its price target from $75 to $100. Frank Lee from HSBC made this upgrade on AMD, citing the recent Saudi Arabia AI deal and easing of tariff tensions to be a positive development for the company. AMD posted better-than-expected results for the first quarter of 2025, driven by upbeat growth in the data center revenue. The Q1 results have revived investor sentiment for AMD stock. AMD posted a 36% increase in its Q1 revenue compared to the same period a year ago, reaching $7.4 billion. The revenue was driven by robust growth in the data center and client segments. The company experienced a 55% growth in net income, fueled by a higher percentage of data center product sales and a robust Ryzen processor mix. Data center segment revenue soared nearly 57% year-over-year, with major contributions from EPYC CPU and Instinct AI accelerator sales. Lee sees potential upside for AMD in the future from the deal between the U.S. and Saudi Arabia. The analyst also cited that AMD is 'appealing in terms of long-term total addressable market (TAM) opportunity.' Lee is optimistic about AMD's upcoming AI chips and said that the company can gain from the new product launches, getting in a position to fight competition from Intel. Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, graphics, and visualization technologies. AMD operates four segments, including Data Center, Client, Gaming, and Embedded. While we acknowledge the potential of AMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock. Read Next: and . Disclosure. None. 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
28-05-2025
- Business
- Yahoo
HSBC Upgrades Advanced Micro Devices (AMD) Stock to Hold, Lifts PT
On May 28, HSBC upgraded the rating on Advanced Micro Devices, Inc. (NASDAQ:AMD) stock from Sell to Hold, increasing its price target from $75 to $100. Frank Lee from HSBC made this upgrade on AMD, citing the recent Saudi Arabia AI deal and easing of tariff tensions to be a positive development for the company. AMD posted better-than-expected results for the first quarter of 2025, driven by upbeat growth in the data center revenue. The Q1 results have revived investor sentiment for AMD stock. AMD posted a 36% increase in its Q1 revenue compared to the same period a year ago, reaching $7.4 billion. The revenue was driven by robust growth in the data center and client segments. The company experienced a 55% growth in net income, fueled by a higher percentage of data center product sales and a robust Ryzen processor mix. Data center segment revenue soared nearly 57% year-over-year, with major contributions from EPYC CPU and Instinct AI accelerator sales. Lee sees potential upside for AMD in the future from the deal between the U.S. and Saudi Arabia. The analyst also cited that AMD is 'appealing in terms of long-term total addressable market (TAM) opportunity.' Lee is optimistic about AMD's upcoming AI chips and said that the company can gain from the new product launches, getting in a position to fight competition from Intel. Advanced Micro Devices, Inc. (NASDAQ:AMD) is a global semiconductor company focused on high-performance computing, graphics, and visualization technologies. AMD operates four segments, including Data Center, Client, Gaming, and Embedded. While we acknowledge the potential of AMD to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than AMD and that has 100x upside potential, check out our report about this cheapest AI stock. Read Next: and . Disclosure. None. Sign in to access your portfolio
Yahoo
07-05-2025
- Business
- Yahoo
Advanced Micro Devices Inc (AMD) Q1 2025 Earnings Call Highlights: Strong Revenue Growth Amid ...
Revenue: $7.4 billion, up 36% year over year. Gross Margin: 54%, up 140 basis points from a year ago. Net Income: Increased by 55% year over year. Operating Income: $1.8 billion, representing a 24% operating margin. Diluted EPS: $0.96, an increase of 55% year over year. Data Center Revenue: $3.7 billion, up 57% year over year. Client and Gaming Revenue: $2.9 billion, up 28% year over year. Embedded Revenue: $823 million, down 3% year over year. Cash from Operations: $939 million. Free Cash Flow: $727 million. Share Repurchase: $749 million returned to shareholders. Cash and Equivalents: $7.3 billion at the end of the quarter. Second Quarter Revenue Outlook: Approximately $7.4 billion, plus or minus $300 million. Second Quarter Gross Margin Outlook: Estimated to be 43%, inclusive of charges. Release Date: May 06, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Advanced Micro Devices Inc (NASDAQ:AMD) reported a 36% year-over-year increase in first-quarter revenue, reaching $7.4 billion, driven by strong growth in data center and client segments. The company achieved a 55% increase in net income, supported by a higher percentage of data center product sales and a richer Ryzen processor mix. Data center segment revenue grew by 57% year over year, with significant contributions from EPYC CPU and Instinct AI accelerator sales. AMD's client revenue increased by 68% year over year, marking the fifth consecutive quarter of revenue share gains, driven by high-end Ryzen processors. The company expanded its gross margin for the fifth straight quarter, reaching 54%, up 140 basis points from the previous year. Negative Points Gaming revenue decreased by 30% year over year, primarily due to lower semi-custom sales despite higher Radeon Graphics sales. Embedded segment revenue declined by 3% year over year, with a gradual recovery expected in the second half of 2025. The new export license requirement for MI308 shipments to China is expected to result in a $1.5 billion revenue reduction for the full year 2025. AMD's second-quarter guidance includes an estimated $700 million revenue reduction due to the new export license requirement, impacting data center segment revenue. Operating expenses increased by 28% year over year, as AMD continues to invest in go-to-market activities and R&D. Q & A Highlights Q: Congrats on the results. Can you expand on the drivers of upside in both footprint and the guide, particularly for the Client segment? A: Lisa Su, CEO: We saw strength across several businesses, notably in the client business with strong desktop performance and a successful Radeon launch in gaming. The client segment's growth was driven by a stronger mix and higher ASPs, particularly in the desktop channel. For Q2, despite a $700 million headwind from new export controls on MI308, we expect continued strength in Client and Gaming, with above-seasonal performance in desktop and commercial ramps.
