Key Stats for AMD Stock
- Today’s Price Change: 2%
- Current Share Price: $99
- 52-Week High: $187
- Analysts’ Price Target: $134
What Happened?
Advanced Micro Devices (AMD) shares are up 2% today following its Q1 results. AMD stock showed mixed movement in after-hours trading on Tuesday after the chipmaker reported first-quarter earnings that exceeded analysts’ expectations.
The chip stock initially rose 4% before falling less than 1% when the company discussed the impact of AI chip export controls.
AMD reported adjusted earnings per share of $0.96, which was above estimates of $0.93. Revenue stood at $7.44 billion, above estimates of $7.12 billion.
The company’s net income reached $709 million (or $0.44 per share), which was a significant improvement from $123 million (or $0.07 per share) from last year’s Q1. Revenue grew 36% year-over-year.
AMD provided strong guidance for the current quarter, projecting approximately $7.4 billion in sales with a 43% gross margin. This exceeded Wall Street estimates of $7.25 billion.
However, the semiconductor giant also disclosed that it would incur about $800 million in costs due to U.S. restrictions on exporting some of its AI chips.
AMD further estimated that export controls would result in approximately $700 million in lost revenue during the current quarter and $1.5 billion in total through the end of its fiscal year.
See AMD’s full Q1 earnings transcript (It’s free) >>>
What the Market Is Telling Us
AMD’s Q1 2025 earnings beat expectations, but the stock’s modest movement reflects investor concerns over export restrictions impacting its AI chip business.
While the data center segment showed impressive 57% year-over-year growth, reaching $3.7 billion in sales (exceeding analyst estimates), export-related costs and revenue losses created uncertainty.
CEO Lisa Su addressed these concerns on the earnings call, stating that the “headwinds from the dynamic macro and regulatory environments” are “more than offset by the powerful tailwinds from our leadership product portfolio.”
The client segment also showed strength, with laptop and PC chip sales surging 68% year-over-year to $2.3 billion due to strong demand for the company’s Zen 5 chips. However, gaming sales declined 30% year-over-year to $647 million, attributed to decreased console chip revenue.
The mixed after-hours trading suggests investors are weighing AMD’s strong current performance and guidance against the longer-term implications of export controls on its AI chip business, particularly as the company competes with Nvidia for market share in the rapidly growing AI GPU space.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
