AMD rises 5% after beating Q1 estimates, lifts Q2 outlook

AMD shares rose about 5% in late trading Tuesday after the chipmaker reported $10.25 billion in first-quarter revenue, an adjusted diluted EPS of $1.37 and guidance for about $11.2 billion in second-quarter revenue. The company cited strong demand in its data center business.

On a GAAP basis, AMD reported $10.25 billion in revenue, diluted EPS of $0.84 and net income of $1.38 billion. On a non-GAAP basis the company reported $1.37 in diluted EPS and a 55% gross margin. Revenue rose about 38% year over year from the comparable quarter last year and was roughly flat versus the prior quarter.

GAAP gross margin for the quarter was 53%. GAAP operating income rose to about $1.48 billion, while non-GAAP operating income reached $2.54 billion. Operating expenses increased year over year, reflecting higher research and development and sales spending.

AMD’s Data Center segment generated $5.8 billion in revenue, up 57% from a year earlier, driven by shipments of EPYC processors and Instinct GPUs. Client and Gaming revenue totaled $3.6 billion, a 23% increase, with client revenue of $2.9 billion and gaming revenue of $720 million. Embedded revenue was $873 million, up 6% year over year.

For the second quarter, AMD forecast revenue of about $11.2 billion, plus or minus $300 million, which the company said would represent roughly 46% year-over-year growth and about 9% sequential growth. AMD expects a non-GAAP gross margin near 56% for the quarter.

AMD reported several customer agreements and product updates tied to its data center push. Meta plans to deploy up to 6 gigawatts of AMD Instinct GPUs, with the first gigawatt using a custom MI450-based GPU, and will be an early customer for sixth-generation EPYC processors. Multiple cloud providers announced new or expanded cloud instances powered by AMD’s fifth-generation EPYC processors. AMD also said its Instinct MI355X posted top MLPerf results in several categories.

The company introduced new chips for servers, enterprise desktops, creators and edge applications. Announcements included EPYC 8005 server CPUs for telecom and edge systems, Ryzen AI PRO 400 Series processors for enterprise desktops, the Ryzen 9950X3D2 Dual Edition for creators, Ryzen AI Embedded P100 Series processors for industrial and edge AI, and Kintex UltraScale+ Gen 2 FPGAs for imaging and broadcast uses.

“Demand is getting stronger as inferencing and agentic AI increase the need for high-performance CPUs and accelerators,” Dr. Lisa Su noted. She added that server growth should accelerate as supply expands and that customer interest in the MI450 Series and Helios has exceeded early company expectations.

AMD said the quarter’s results, customer agreements and product launches are expected to support its revenue and margin outlook for the coming quarter.