AMD Beats Q1 Earnings, Forecasts Robust Q2 Growth Amid Zen 5 Launch

Advanced Micro Devices Inc. (AMD) reported its first-quarter earnings after the market closed on Tuesday, surpassing analysts' expectations. The company announced adjusted earnings per share of $0.96 on revenue of $7.4 billion, compared to the anticipated $0.94 per share on revenue of $7.1 billion. This performance marks a significant improvement from the same quarter last year, when AMD reported earnings per share of $0.62 on revenue of $5.4 billion.

AMD's Data Center segment was a key driver of growth, generating revenue of $3.7 billion, up 57% year-over-year, primarily due to increased sales of AMD EPYC™ CPUs and AMD Instinct™ GPUs. The company's Client segment, which includes revenue from laptop and desktop chips, also performed well, bringing in $2.3 billion for the quarter, up from $1.3 billion in the previous year. AMD also provided a strong outlook for the second quarter, forecasting revenue between $7.1 billion and $7.7 billion, which is above the consensus estimate of $7.2 billion.

Despite facing a challenging macro and regulatory environment, including tightened export restrictions on AI chips to China and the looming AI diffusion rules, AMD's CEO Lisa Su expressed confidence in the company's product portfolio and execution capabilities, positioning AMD for robust growth in 2025. The stock rose more than 5% in after-hours trading following the earnings release, buoyed by the positive results and the introduction of the new Zen 5 architecture.