AMD is seeing gross margin expansion driven by strong demand for high-end products

From Nasdaq: 2025-06-30 10:09:00

Advanced Micro Devices (AMD) continues to see gross margin expansion for the fifth consecutive quarter, reaching 53.7% in Q1 2025. Strong demand for Ryzen CPUs and data center products contribute to this growth, with higher-end products boosting average selling prices and margins.
Facing competition from NVIDIA and Intel, AMD maintains its margin expansion trend while both competitors see declines. NVIDIA’s Q1 2026 gross margin dropped due to export restrictions, while Intel’s Q1 2025 margin was impacted by restructuring costs and impairment charges.
AMD’s stock has outperformed the sector, with a forward Price/Sales premium and a Value Score of F. Estimate for Q2 2025 earnings is 54 cents per share, down 8.4% in the past 30 days. The Zacks Consensus Estimate indicates a 21.74% year-over-year decrease.
The consensus estimate for AMD’s 2025 earnings is $3.92 per share, showing 18.43% year-over-year growth. The company carries a Zacks Rank #3 (Hold) with potential for future growth in the semiconductor market driven by AI, ML, and IoT demand.