Advanced Micro Devices Q1 Earnings: Key Metrics And Market Impact
$AMD
Advanced Micro Devices (NASDAQ:AMD) recently unveiled its financial results for the first quarter of 2025, showcasing a performance with significant year-over-year growth. The company reported a revenue of $7.44 billion, marking a 35.9% increase compared to the same period last year. This growth exceeded the Zacks Consensus Estimate of $7.12 billion by 4.45%.
Additionally, AMD’s earnings per share (EPS) for the quarter stood at $0.96, surpassing last year’s figure of $0.62 and beating the consensus EPS estimate of $0.93 by 3.23%. The detailed breakdown of revenue across AMD’s key business segments reveals growth, particularly in the Data Center and Client segments.
The Data Center revenue reached $3.67 billion, significantly higher than the eight-analyst average estimate of $3.45 billion and representing a 57.2% increase year-over-year. Conversely, the Embedded segment experienced a slight decline of 2.7%, with revenues amounting to $823 million compared to the estimated $838.04 million.
The Gaming segment, however, faced challenges with a revenue of $647 million, which, despite exceeding the average estimate of $569.80 million, marked a 29.8% decrease from the previous year. In contrast, the Client segment, on the other hand, demonstrated growth with revenues of $2.29 billion, surpassing the $2.04 billion average estimate and showing a 67.7% increase year-over-year.
AMD’s stock performance reflected the positive financial results, with shares increasing by 20.3% over the past month, outperforming the Zacks S&P 500 composite’s change of +11.5%. The company holds a Zacks Rank #3. Looking ahead, AMD continues to capitalize on the lucrative market for data center processors, gaining market share from competitors like Intel. The company is also benefiting from strong demand for chips that are essential components in personal computers.
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