AMD Reports Strong Q1 Results
AMD recently announced its first-quarter financial results, and it exceeded what analysts had predicted regarding both revenue and earnings. Notably, their outlook for second-quarter revenue also surpassed Wall Street expectations.
Following the announcement, AMD’s stock saw an increase of over 6%.
The earnings per share (EPS) for this quarter came in at $1.37, with total revenue of $10.25 billion. This was above the anticipated EPS of $1.28 and revenue of $9.89 billion, based on estimates from Bloomberg.
Looking back, the same quarter last year showed an EPS of $0.96 and revenue of $7.43 billion.
AMD forecasts second-quarter revenue between $10.9 billion and $11.5 billion, while analysts had expected it to land around $10.52 billion.
In terms of data center revenue, AMD reported $5.8 billion for the first quarter, which is a 57% increase from the previous year and better than the anticipated $5.6 billion.
It’s worth noting that AMD’s financial report arrived shortly after Intel’s earnings release, which also beat expectations and highlighted a robust data center business. This caused Intel’s stock to spike by 24%.
As interest in AI agents continues to rise, CPUs are gaining more importance in data centers. These agents, whether semi-autonomous or fully autonomous, perform tasks on behalf of users, thereby increasing the demand for processors.
While both Intel and AMD manufacture CPUs, AMD offers high-performance GPUs tailored for AI model training and operation, potentially attracting a broader customer base.
To enhance its market position, AMD is preparing to launch its inaugural rack-scale system, dubbed Helios. This new system is akin to Nvidia’s recently announced NVL72 rack system, which integrates GPUs and CPUs into larger server configurations.
In addition, AMD’s client division generated $2.9 billion in revenue, surpassing expectations of $2.73 billion. The gaming side specifically hit $720 million, exceeding the anticipated $668 million.
However, the International Data Corporation projects a significant decline in global PC shipments—a drop of 11.3% is expected in 2026, attributed to an ongoing global memory shortage. Tablet shipments may also see a decrease of 7.6%.
At Apple’s recent earnings call, CEO Tim Cook mentioned that rising memory prices could adversely affect the company’s profit margins in upcoming quarters.
