AMD stock jumped 4.9% before settling at a 0.4% gain due to strong Q1 results.

From Nasdaq: 2025-05-07 11:58:00

Shares of AMD jumped 4.9% before settling at a 0.4% gain. The chipmaker reported Q1 revenue of $7.4 billion, up 36% YoY, with EPS at $0.96, beating estimates. Data center revenue hit $3.7 billion, up 57% YoY. CEO Lisa Su praised the company’s growth, but analysts remain cautious due to export restrictions on chip sales to China.

Although AMD’s results exceeded expectations, analysts are concerned about a $1.5 billion charge due to export restrictions. Jefferies and Citigroup analysts worry about declining revenue from AI and lowered estimates. Despite these reservations, AMD is seen as a strong long-term investment opportunity at 22 times forward earnings.

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Note: Citigroup is an advertising partner of Motley Fool Money. Danny Vena has no positions in the mentioned stocks. The Motley Fool has positions in and recommends AMD and Jefferies Financial Group.



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