AMD Crushes Q1 2025 Expectations, Revenue and EPS Top Estimates
AMD reported first-quarter 2025 financial results that surpassed analyst expectations on both the top and bottom lines, with earnings per share (EPS) of $1.37 on revenue of $10.25 billion. Analysts had forecast EPS of $1.28 on revenue of $9.89 billion.
Revenue surged 38% year-over-year from $7.43 billion in Q1 2024, while EPS grew from $0.96.
Segment Performance
- Data Center: Revenue of $5.8 billion, up 57% year-over-year, above estimates of $5.6 billion.
- Client: Revenue of $2.9 billion, above estimates of $2.73 billion.
- Gaming: Revenue of $720 million, above estimates of $668 million.
Q4 2024 Results
For the fourth quarter of 2024, revenue came in at $10.27 billion, surpassing estimates of $9.65 billion and the company's guidance of $9.3 billion to $9.9 billion. Adjusted EPS for Q4 2024 was $1.53, exceeding the estimate of $1.32. Sales of MI308 chips to China contributed $390 million to Q4 2024 revenue.
Outlook
For the second quarter of 2025, AMD management provided revenue guidance of $10.9 billion to $11.5 billion, above the consensus estimate of $10.52 billion.
For the first quarter of 2025, management had anticipated revenues of $9.8 billion, with a potential variation of $300 million. This guidance included an expected $100 million in sales of MI308 chips to China. The estimated adjusted gross margin for the quarter was 55%.
Market Reaction
Following the Q1 2025 earnings announcement, AMD stock rose 6% in trading. Following the Q4 2024 earnings announcement, shares had declined nearly 7% in after-hours trading.
Company Statements
"We are entering 2026 with strong momentum across our business."
— Dr. Lisa Su, Chair and CEO of AMD, speaking in the Q4 2024 earnings release
During an analyst day in Q4, Dr. Su projected compounded annual revenue growth of over 35% for AMD over the next three to five years, with data center business growth expected to exceed 60%.
Industry Context
- AMD's Q1 2025 earnings follow Intel's Q1 report on April 23, which also beat estimates and provided a better-than-expected outlook.
- Global PC shipments are forecast to fall 11.3% in 2026, and tablet shipments 7.6%, according to IDC.
- During Apple's Q2 earnings call, CEO Tim Cook noted increased memory prices may impact margins in coming quarters.
- CPUs are increasingly important in data centers due to AI agent adoption.
- AMD plans to launch Helios, a rack-scale system combining GPUs and CPUs, similar to Nvidia's NVL72.