Latest news with #InstinctAI
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
17-05-2025
- Business
- Yahoo
1 Semiconductor Stock That Could Be a Surprise AI Winner
AMD's EPYC processors are increasingly used by cloud providers and Fortune 2000 enterprises. The chipmaker is building next-generation products to support AI models right out of the box. Elsewhere in AMD's business, its gaming and PC chips are also seeing strong demand. 10 stocks we like better than Advanced Micro Devices › Advanced Micro Devices (NASDAQ: AMD) is gradually evolving from mostly a traditional chip company to a prominent artificial intelligence (AI) infrastructure player. While Wall Street has been mostly focusing on Nvidia, AMD has quietly established itself as a strong player in the AI data center business. The company provides high-performance computing hardware and software solutions to clients for processing cloud and AI workloads. In the first quarter of 2025, data center revenue grew 57% year over year to $3.67 billion, making up almost half of AMD's total revenue. Data center AI business revenue also increased by a double-digit percentage year over year, driven by increased shipments of the MI325X accelerators for new cloud and enterprise workloads. With AI inferencing costs escalating rapidly, AMD is in a better position to capture a bigger share of the AI market. Its Instinct GPUs are known to offer superior price performance than competitors. Here are some more reasons why the company may prove to be a surprise AI winner in 2025. AMD's data center business is experiencing robust momentum, driven by solid demand for its EPYC server processors and Instinct AI accelerators. AMD accounted for 25.1% share of the server CPU market, up 2 percentage points year over year, as EPYC server processors continue to be in high demand from both cloud players and enterprise customers. All major cloud players are engaging with the company in the development of fifth-generation EPYC CPUs, codenamed "Turin." EPYC processors are also in high demand from enterprise customers across a range of industries and functions. The company expects enterprise adoption of EPYC processors to further accelerate, as more than 150 server platforms using these chips will become broadly available in the coming quarters. The company's data center AI business is also gaining traction. Multiple Tier 1 cloud and enterprise customers have opted for AMD's Instinct AI accelerators in the first quarter. These clients include one of the largest frontier model developers, which has deployed Instinct GPUs to cater to a significant portion of its daily AI inferencing workloads. AMD has also started sampling the next-generation MI350 series GPUs with several customers and is on track for production by mid-2025. With MI350 offering higher performance, memory capacity, bandwidth, support for new data types, and network efficiency as compared to the MI300 series, AMD expects strong deployment for these chips in the second half of 2025. Furthermore, the company is gearing up for the launch of MI400 series GPUs in 2026. AMD is also focusing on strengthening its software ecosystem, mainly its ROCm software stack for programming the company's GPUs. Instead of releasing quarterly ROCm updates, the company is now delivering them on a biweekly basis. The company has also increased access to its Instinct compute infrastructure for open-source developers to build, test, and deploy updates to the ROCm stack on a nightly basis. Subsequently, 2 million models on the open-source Hugging Face platform are running directly on AMD hardware without needing any special customization. The company is also ensuring that newly released AI models can run without hiccups on Instinct accelerators immediately after launch. Finally, the recent acquisition of ZT Systems is enabling AMD to sell fully integrated AI systems, instead of just hardware components. All these AI initiatives can dramatically expand AMD's data center business in the coming years. AMD's client segment also reported a strong 68% year-over-year revenue jump to $2.3 billion in the first quarter. The company experienced record client CPU average selling prices (ASPs), driven by increased demand for its high-end desktop and Ryzen processors in gaming and commercial segments. While AMD's processors are increasingly adopted in gaming desktops, the company is also seeing rising demand in the mobile computing market. Furthermore, sales of the company's latest-generation AI-capable processors also grew more than 50% quarter over quarter in the first quarter. AMD is also making its presence felt in the commercial PC space, with the company closing deals with large enterprises across several industries. Despite the solid tailwinds, AMD's shares are currently trading at 21.7 times forward earnings, significantly lower than Nvidia's forward P/E multiple of 25.4. While investors should not ignore the short-term revenue headwind arising from the export control restrictions for Instinct MI308 shipments to China, the fundamentals of the company are still strong. Hence, with a diversified product portfolio spanning various segments such as data center, gaming, and client; a robust balance sheet with $7.3 billion in cash; and a reasonable valuation position, AMD appears an attractive pick now. 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 $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 959% — a market-crushing outperformance compared to 170% 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 12, 2025 Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. 1 Semiconductor Stock That Could Be a Surprise AI Winner was originally published by The Motley Fool
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 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.
