Advanced Micro Devices reported first fiscal-quarter earnings on Tuesday that topped expectations, and provided a strong forecast for current-quarter revenue.
Shares of AMD were up 4% in extended trading before receding to fall less than 1% after the company discussed the effect of AI chip export controls.
Here’s how the chipmaker did versus LSEG expectations for the quarter that ended March 29:
- Earnings per share: 96 cents adjusted vs. 94 cents expected
- Revenue: $7.44 billion vs. $7.13 billion expected
For the current quarter, AMD expects about $7.4 billion in sales with a gross margin of 43%, versus Wall Street estimates for earnings of 86 cents adjusted on $7.25 billion in sales.
AMD CEO Lisa Su said that the company achieved its first-quarter results despite grappling regulations on advanced AI chip exports. The company’s forecast included $800 million in costs that the company said it would incur because the U.S. limited the export of some of the company’s artificial intelligence chips during the quarter.
AMD also said that it expected about $700 million in lost revenue during the current quarter from export controls, and $1.5 billion in total through the end of AMD’s fiscal year.
“While we face some headwinds from the dynamic macro and regulatory environments, including the recently announced export controls for Instinct MI308X shipments to China, we believe they are more than offset by the powerful tailwinds from our leadership product portfolio,” Su said on an earnings call with analysts.
The company reported net income of $709 million, or 44 cents per diluted share, versus net income of $123 million, or 7 cents per share, during the year-earlier period. Revenue grew 36% on an annual basis.
AMD is the second-place server central processing unit vendor, behind Intel, but its Epyc line of processors has been taking market share in recent years.
The company is also the closest competitor to Nvidia for “big GPUs,” or graphics processing units. Those are the kind of chips that are deployed in data centers by the thousands for building generative AI. It did $5 billion in AI GPU sales in the company’s fiscal 2024.
Both are reported in the company’s data center segment, which came in at $3.7 billion in sales, topping a StreetAccount estimate. Data center sales were up 57% on an annual basis, which the company attributed to demand for both Epyc processors and Instinct GPUs.
“I know there are some uncertainties as it relates to tariffs and other things, but this is one of those areas where from an infrastructure standpoint, there continues to be investment,” Su said.
Su told investors on an earnings call that AMD’s chips are being used to train AI. She also said a major AI model developer is using AMD chips to deploy their service, a process called inference.
“The depth and breadth of our customer engagements continues to expand as breakthroughs in large-scale AI models like OpenAI’s 03 and DeepSeek R1 drive increased demand,” Su said.
The company’s other major segment, Client and Gaming, includes chips for consumer devices such as laptops, gaming PCs and game consoles. The overall segment rose 28% on an annual basis to $2.9 billion. AMD said sales for its laptop and PC chips, which it calls client revenue, surged 68% year over year because of strong demand for chips called Zen 5 that the company released last summer.
Gaming sales, however, declined 30% on an annual basis, which the company attributed to a decrease in console chip revenue.
AMD’s embedded segment, which is mostly sales from the company’s 2022 acquisition of Xilinx, declined 3% on an annual basis to $823 million.
https://www.cnbc.com/2025/05/06/amd-earnings-report-q1-2025-.html
