Strong Performance Metrics

AMD reported impressive first-quarter results, achieving revenues of $7.44 billion. This figure represents a 36% increase compared to the same quarter last year and surpasses analyst forecasts provided by Visible Alpha.

Adjusted net income also saw significant growth, reaching $1.57 billion, which translates to 96 cents per share. This marks an increase from $1.01 billion, or 62 cents per share, from the prior year’s comparable quarter.

Data Center Revenue Surge

A major contributor to AMD’s financial success was its data center segment, which experienced a remarkable 57% year-over-year increase, amounting to $3.67 billion in sales. This growth exceeded the expectations set by market analysts.

CEO Insights

“We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum,” stated AMD CEO Lisa Su.

Market Reaction and Outlook

Following the release of its earnings report, AMD shares exhibited volatility in after-hours trading. Year-to-date, the stock has seen a decline of approximately 18% as of the market close on Tuesday.

Looking ahead, AMD projects second-quarter revenues between $7.1 billion and $7.7 billion, slightly below the consensus estimate of $7.3 billion among analysts.

Regulatory Challenges

The company cautioned that its upcoming results will be impacted by anticipated charges of around $800 million due to escalating restrictions on chip sales to China. This regulatory environment is not unique to AMD; rival Nvidia (NVDA) has also suggested that it may face a $5.5 billion charge linked to limitations on H20 chip exports.

Future Prospects

Despite navigating a challenging macroeconomic and regulatory landscape, CEO Lisa Su emphasized the robustness of AMD’s product portfolio and operational execution. “Our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution positioning us well for strong growth in 2025,” she affirmed.