AMD earnings beat estimates, revenues up, partnerships expand, margins improve, shares rise

From Nasdaq: 2025-05-07 12:19:00

Advanced Micro Devices (AMD) reported first-quarter 2025 non-GAAP earnings of 96 cents per share, beating estimates by 3.23% and surging 54.8% year over year. Revenues of $7.438 billion beat estimates by 4.45%, driven by Data Center and Client segments, offset by weakness in Gaming and Embedded segments. AMD shares rose 1.80% in pre-market trading.

Data Center revenues surged 57.2% year over year to $3.674 billion, benefiting from strong EPYC CPU sales. AMD expanded partnerships with companies like Meta Platforms, Dell Technologies, and Jio Platforms to deliver advanced AI solutions. Margins expanded in Q1, with non-GAAP gross margin at 53.7%.

Client segment revenues rose 67.7% to $2.294 billion, driven by demand for Ryzen CPUs. However, Gaming segment revenues declined 29.8% and Embedded segment revenues were down 2.7%. AMD’s balance sheet remains strong, with cash and short-term investments at $7.310 billion.

AMD expects second-quarter 2025 revenues of $7.4 billion, with a non-GAAP gross margin of 43%. The company anticipates growth in Data Center and Client businesses, along with a modest increase in Gaming and Embedded businesses. AMD currently holds a Zacks Rank #3 (Hold).



Read more at Nasdaq: AMD Q1 Earnings Top Estimates, Revenues Up Y/Y, Shares Rise