Advanced Micro Devices (NASDAQ:AMD – Get Free Report) announced its quarterly earnings data on Tuesday. The semiconductor manufacturer reported $1.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.30 by $0.07, FiscalAI reports. Advanced Micro Devices had a return on equity of 8.84% and a net margin of 12.52%.The firm had revenue of $10.25 billion during the quarter, compared to the consensus estimate of $9.90 billion. During the same quarter in the prior year, the company earned $0.96 EPS. The business’s revenue for the quarter was up 37.8% on a year-over-year basis.
Here are the key takeaways from Advanced Micro Devices’ conference call:
- Q1 results beat guidance with revenue of $10.3 billion (+38% YoY), record free cash flow of $2.6 billion, and data center revenue up 57%, marking a structural inflection in growth.
- Strong data center AI momentum — broadened Instinct adoption, multi‑generation deals (notably with Meta and OpenAI), MI450 sampling and Helios rack platform on track for H2 ramp, and a target of tens of billions in annual DC AI revenue by 2027.
- AMD raised its server CPU outlook, now expecting server CPU TAM to grow at >35% annually to over $120 billion by 2030 and server CPU revenue to grow >70% YoY in Q2, driven by upcoming Venice (Zen 6 / 2nm) and a new AI‑focused Verano SKU.
- Gross margin expanded to 55% (Q2 guide ~56%) but OpEx is up 42% YoY as R&D ramps for AI; MI450/Helios are below corporate average margin and may pressure H2 margins even as AMD targets a long‑term 55–58% range.
- Client and gaming face near‑term headwinds from rising memory and component costs — AMD sees second‑half PC and gaming demand weakness and expects gaming revenue to decline >20% in H2 versus H1.
Advanced Micro Devices Stock Performance
AMD traded up $13.72 on Tuesday, hitting $355.26. The company’s stock had a trading volume of 56,120,479 shares, compared to its average volume of 40,296,296. Advanced Micro Devices has a 12 month low of $96.88 and a 12 month high of $362.79. The firm has a market cap of $579.19 billion, a P/E ratio of 134.06, a price-to-earnings-growth ratio of 1.23 and a beta of 2.40. The company has a quick ratio of 2.01, a current ratio of 2.85 and a debt-to-equity ratio of 0.04. The company’s 50 day simple moving average is $232.51 and its 200-day simple moving average is $228.39.
Wall Street Analysts Forecast Growth
Read Our Latest Stock Report on AMD
More Advanced Micro Devices News
Here are the key news stories impacting Advanced Micro Devices this week:
- Positive Sentiment: Q1 beat and strong AI-driven data‑center growth — AMD reported $1.37 EPS vs. $1.30 consensus and revenue of ~$10.25B, with data‑center sales jumping sharply; the company gave second‑quarter revenue guidance that came in above Street expectations, signaling continued AI demand. Read More.
- Positive Sentiment: CEO commentary and ecosystem moves bolster the AI case — management highlighted robust demand for EPYC CPUs and Instinct GPUs, while AMD is investing in adjacent AI infrastructure (seed investment in RadixArk; partnerships like Zyphra) that expand TAM for its accelerators. Read More.
- Neutral Sentiment: Options and volatility priced in — heavy options activity ahead of/after the print shows traders were positioned for a big move; that amplifies intraday swings even after a beat. Read More.
- Neutral Sentiment: Some analysts raise targets amid the beat — select firms (e.g., Wedbush) have lifted price targets, reflecting stronger revenue trajectories, which supports upside but also highlights divergent Street views. Read More.
- Negative Sentiment: Valuation and supply constraints remain key risks — several analysts warned the recent rally left limited margin for error; HSBC downgraded to Hold pointing to valuation and production limits (CoWoS/packaging bottlenecks). That caution pressures investors who need near‑term proof the demand can scale. Read More.
- Negative Sentiment: Sell‑the‑news and margin/CapEx watch — some commentators flagged elevated CapEx and the risk of mean‑reversion after a steep run‑up; investors will focus on margin commentary and whether AMD can convert demand into shipments without worsening costs. Read More.
Insider Buying and Selling
In related news, EVP Mark D. Papermaster sold 31,320 shares of the business’s stock in a transaction on Friday, April 24th. The stock was sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the sale, the executive vice president directly owned 1,236,037 shares in the company, valued at approximately $432,612,950. The trade was a 2.47% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Paul Darren Grasby sold 7,500 shares of the firm’s stock in a transaction dated Wednesday, March 11th. The stock was sold at an average price of $204.87, for a total value of $1,536,525.00. Following the completion of the transaction, the executive vice president owned 129,598 shares of the company’s stock, valued at approximately $26,550,742.26. This represents a 5.47% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 304,672 shares of company stock worth $70,135,070. Insiders own 0.50% of the company’s stock.
Institutional Investors Weigh In On Advanced Micro Devices
Institutional investors and hedge funds have recently modified their holdings of the company. Brighton Jones LLC lifted its stake in Advanced Micro Devices by 178.2% in the 4th quarter. Brighton Jones LLC now owns 45,956 shares of the semiconductor manufacturer’s stock worth $5,551,000 after purchasing an additional 29,438 shares in the last quarter. Revolve Wealth Partners LLC grew its position in shares of Advanced Micro Devices by 2.9% during the 4th quarter. Revolve Wealth Partners LLC now owns 8,283 shares of the semiconductor manufacturer’s stock valued at $1,001,000 after purchasing an additional 234 shares in the last quarter. Sivia Capital Partners LLC increased its holdings in shares of Advanced Micro Devices by 125.1% in the second quarter. Sivia Capital Partners LLC now owns 5,344 shares of the semiconductor manufacturer’s stock worth $758,000 after purchasing an additional 2,970 shares during the period. United Bank raised its position in shares of Advanced Micro Devices by 22.0% in the second quarter. United Bank now owns 13,255 shares of the semiconductor manufacturer’s stock worth $1,881,000 after buying an additional 2,392 shares in the last quarter. Finally, Schnieders Capital Management LLC. raised its position in shares of Advanced Micro Devices by 361.0% in the second quarter. Schnieders Capital Management LLC. now owns 9,230 shares of the semiconductor manufacturer’s stock worth $1,310,000 after buying an additional 7,228 shares in the last quarter. 71.34% of the stock is owned by hedge funds and other institutional investors.
About Advanced Micro Devices
Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.
Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.
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