Advanced Micro Devices (NASDAQ:AMD) Announces Quarterly Earnings Results

Advanced Micro Devices (NASDAQ:AMD) posted its earnings results on Tuesday. The semiconductor manufacturer reported $1.37 EPS for the quarter, topping analysts’ consensus estimates of $1.30 by $0.07, FiscalAI reports. Advanced Micro Devices had a net margin of 12.52% and a return on equity of 8.84%. The business had revenue of $10.25 billion for the quarter, compared to analysts’ expectations of $9.90 billion. During the same period in the previous year, the company posted $0.96 earnings per share. The business’s revenue for the quarter was up 37.8% compared to the same quarter last year.

Here are the key takeaways from Advanced Micro Devices’ conference call:

• Q1 results beat guidance with revenue of $10.3 billion (+38% YoY), record free cash flow of $2.6 billion, and data center revenue up 57%, marking a structural inflection in growth.
• Strong data center AI momentum — broadened Instinct adoption, multi?generation deals (notably with Meta and OpenAI), MI450 sampling and Helios rack platform on track for H2 ramp, and a target of tens of billions in annual DC AI revenue by 2027.
• AMD raised its server CPU outlook, now expecting server CPU TAM to grow at >35% annually to over $120 billion by 2030 and server CPU revenue to grow >70% YoY in Q2, driven by upcoming Venice (Zen 6 / 2nm) and a new AI?focused Verano SKU.
• Gross margin expanded to 55% (Q2 guide ~56%) but OpEx is up 42% YoY as R&D ramps for AI; MI450/Helios are below corporate average margin and may pressure H2 margins even as AMD targets a long?term 55–58% range.
• Client and gaming face near?term headwinds from rising memory and component costs — AMD sees second?half PC and gaming demand weakness and expects gaming revenue to decline >20% in H2 versus H1.

Advanced Micro Devices Stock Performance

Shares of Advanced Micro Devices stock traded up $13.72 during trading on Tuesday, hitting $355.26. 56,120,479 shares of the stock were exchanged, compared to its average volume of 40,296,296. The stock’s fifty day moving average is $235.61 and its 200 day moving average is $229.21. The stock has a market cap of $579.19 billion, a PE ratio of 134.06, a P/E/G ratio of 1.23 and a beta of 2.40. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.01 and a current ratio of 2.85. Advanced Micro Devices has a 12 month low of $96.88 and a 12 month high of $362.79.

Key Stories Impacting Advanced Micro Devices

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: Q1 beat and strong AI-driven data?center growth — AMD reported $1.37 EPS vs. $1.30 consensus and revenue of ~$10.25B, with data?center sales jumping sharply; the company gave second?quarter revenue guidance that came in above Street expectations, signaling continued AI demand. Read More.
• Positive Sentiment: CEO commentary and ecosystem moves bolster the AI case — management highlighted robust demand for EPYC CPUs and Instinct GPUs, while AMD is investing in adjacent AI infrastructure (seed investment in RadixArk; partnerships like Zyphra) that expand TAM for its accelerators. Read More.
• Neutral Sentiment: Options and volatility priced in — heavy options activity ahead of/after the print shows traders were positioned for a big move; that amplifies intraday swings even after a beat. Read More.
• Neutral Sentiment: Some analysts raise targets amid the beat — select firms (e.g., Wedbush) have lifted price targets, reflecting stronger revenue trajectories, which supports upside but also highlights divergent Street views. Read More.
• Negative Sentiment: Valuation and supply constraints remain key risks — several analysts warned the recent rally left limited margin for error; HSBC downgraded to Hold pointing to valuation and production limits (CoWoS/packaging bottlenecks). That caution pressures investors who need near?term proof the demand can scale. Read More.
• Negative Sentiment: Sell?the?news and margin/CapEx watch — some commentators flagged elevated CapEx and the risk of mean?reversion after a steep run?up; investors will focus on margin commentary and whether AMD can convert demand into shipments without worsening costs. Read More.

Insider Activity

In other news, EVP Mark D. Papermaster sold 31,320 shares of the company’s stock in a transaction dated Friday, April 24th. The shares were sold at an average price of $350.00, for a total transaction of $10,962,000.00. Following the completion of the transaction, the executive vice president owned 1,236,037 shares in the company, valued at approximately $432,612,950. This represents a 2.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Forrest Eugene Norrod sold 19,450 shares of the stock in a transaction dated Wednesday, February 11th. The shares were sold at an average price of $216.81, for a total transaction of $4,216,954.50. Following the completion of the transaction, the executive vice president owned 289,098 shares of the company’s stock, valued at $62,679,337.38. This represents a 6.30% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 304,672 shares of company stock worth $70,135,070 over the last ninety days. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Advanced Micro Devices

A number of institutional investors and hedge funds have recently bought and sold shares of AMD. Wilkerson Advisory Group LLC bought a new position in Advanced Micro Devices in the 4th quarter valued at about $33,000. Wealth Watch Advisors INC bought a new position in Advanced Micro Devices in the 3rd quarter valued at about $41,000. Resources Management Corp CT ADV bought a new position in Advanced Micro Devices in the 4th quarter valued at about $43,000. FSA Wealth Management LLC grew its position in Advanced Micro Devices by 32.3% in the 3rd quarter. FSA Wealth Management LLC now owns 287 shares of the semiconductor manufacturer’s stock valued at $46,000 after buying an additional 70 shares in the last quarter. Finally, IFC & Insurance Marketing Inc. bought a new position in Advanced Micro Devices in the 4th quarter valued at about $50,000. Institutional investors own 71.34% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the stock. Wedbush boosted their target price on shares of Advanced Micro Devices from $290.00 to $400.00 and gave the stock an “outperform” rating in a research report on Monday. Erste Group Bank raised shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a report on Thursday, April 2nd. Mizuho upped their price target on shares of Advanced Micro Devices from $275.00 to $280.00 and gave the company an “outperform” rating in a report on Wednesday, February 25th. UBS Group set a $310.00 price target on shares of Advanced Micro Devices in a report on Wednesday, February 4th. Finally, Benchmark reiterated a “buy” rating and set a $325.00 target price on shares of Advanced Micro Devices in a research note on Wednesday, February 25th. One investment analyst has rated the stock with a Strong Buy rating, thirty have issued a Buy rating and ten have issued a Hold rating to the stock. According to data from MarketBeat.com, Advanced Micro Devices has an average rating of “Moderate Buy” and a consensus target price of $303.84.

Advanced Micro Devices Company Profile

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.