From Nasdaq: 2025-05-09 10:15:00

Advanced Micro Devices (AMD) has seen a decline in shares, but its latest quarterly report suggests a buying opportunity. Q1 results exceeded analyst expectations, with revenue up 36% year-over-year to $7.44 billion, driven by strong growth in the data center business due to demand for AI chips in the cloud.

AMD’s data center business is thriving, with revenue from data center GPUs increasing double digits year-over-year. The company is gaining market share in the server CPU market and expects continued growth with the adoption of its next-gen Epyc processors, positioning it well in the AI data center market expected to grow 28% annually through 2030.

Client processor sales received a boost from a 68% increase in revenue in Q1. AMD’s Ryzen CPUs saw high demand in desktops and laptops, while sales of AI-capable PC processors and commercial PC processors also increased significantly, leading to strong growth projections and guidance for $7.4 billion in revenue for Q2 2025.

AMD’s solid growth outlook is supported by expected increases in non-GAAP gross margins and consensus estimates projecting earnings growth of 21% in 2025 and 48% in 2026. With a PEG ratio of 0.49 and trading at a discount to the Nasdaq-100 index, AMD presents an attractive investment opportunity for investors looking to capitalize on the company’s growth potential in the AI market.



Read more at Nasdaq: 3 Reasons to Buy AMD Stock Like There’s No Tomorrow