From Nasdaq: 2025-05-02 15:00:00

Advanced Micro Devices (AMD) is expected to release its first-quarter 2025 results on May 6, with revenues projected at $7.1 billion. The Zacks Consensus Estimate for revenues is $7.12 billion, with earnings estimated at 93 cents per share, indicating a 50% year-over-year growth.

AMD’s data center and client segments are anticipated to show year-over-year growth in the first quarter, driven by demand for EPYC processors and Ryzen chips. Data center revenues are expected to surge by 47.5%, while client segment revenues are projected to grow by 49.3%.

However, AMD’s Embedded and Gaming segments may face challenges, with revenues expected to decline year-over-year. Embedded revenues are estimated to drop by 0.9%, while Gaming revenues are forecasted to decline by 38.1%.

Despite some challenges, AMD benefits from a strong partner base, including Microsoft, Dell Technologies, and Meta Platforms, driving demand for AI accelerators like the Instinct MI300 series. These partnerships are expected to boost data center revenues in the first quarter of 2025.

AMD’s expanding portfolio and strategic acquisitions are likely to improve its top-line growth in the upcoming quarter, although competition from NVIDIA remains a concern. With a Growth Score of C and a Zacks Rank #3 (Hold), investors may consider waiting for a more favorable entry point to accumulate AMD stock.



Read more at Nasdaq: Should You Buy, Hold, or Sell AMD Stock Ahead of Q1 Earnings?