AMD earnings report Q1 2025

Superior Micro Units reported first fiscal-quarter earnings on Tuesday that topped expectations, and supplied a robust forecast for current-quarter income.

Shares of AMD had been up 4% in prolonged buying and selling earlier than receding to fall lower than 1% after the corporate mentioned the impact of AI chip export controls.

This is how the chipmaker did versus LSEG expectations for the quarter that ended March 29:

• Earnings per share: 96 cents adjusted vs. 94 cents anticipated
• Income: $7.44 billion vs. $7.13 billion anticipated

For the present quarter, AMD expects about $7.4 billion in gross sales with a gross margin of 43%, versus Wall Avenue estimates for earnings of 86 cents adjusted on $7.25 billion in gross sales.

AMD CEO Lisa Su mentioned that the corporate achieved its first-quarter outcomes regardless of grappling laws on superior AI chip exports. The corporate’s forecast included $800 million in prices that the corporate mentioned it will incur as a result of the U.S. restricted the export of a few of the firm’s synthetic intelligence chips in the course of the quarter.

AMD additionally mentioned that it anticipated about $700 million in misplaced income in the course of the present quarter from export controls, and $1.5 billion in complete via the top of AMD’s fiscal yr.

“While we face some headwinds from the dynamic macro and regulatory environments, including the recently announced export controls for Instinct MI308X shipments to China, we believe they are more than offset by the powerful tailwinds from our leadership product portfolio,” Su mentioned on an earnings name with analysts.

The corporate reported internet earnings of $709 million, or 44 cents per diluted share, versus internet earnings of $123 million, or 7 cents per share, in the course of the year-earlier interval. Income grew 36% on an annual foundation.

AMD is the second-place server central processing unit vendor, behind Intel, however its Epyc line of processors has been taking market share lately.

The corporate can also be the closest competitor to Nvidia for “big GPUs,” or graphics processing items. These are the sort of chips which might be deployed in knowledge facilities by the hundreds for constructing generative AI. It did $5 billion in AI GPU gross sales within the firm’s fiscal 2024.

Each are reported within the firm’s knowledge heart phase, which got here in at $3.7 billion in gross sales, topping a StreetAccount estimate. Information heart gross sales had been up 57% on an annual foundation, which the corporate attributed to demand for each Epyc processors and Intuition GPUs.

“I know there are some uncertainties as it relates to tariffs and other things, but this is one of those areas where from an infrastructure standpoint, there continues to be investment,” Su mentioned.

Su advised buyers on an earnings name that AMD’s chips are getting used to coach AI. She additionally mentioned a serious AI mannequin developer is utilizing AMD chips to deploy their service, a course of known as inference.

“The depth and breadth of our customer engagements continues to expand as breakthroughs in large-scale AI models like OpenAI’s 03 and DeepSeek R1 drive increased demand,” Su mentioned.

The corporate’s different main phase, Shopper and Gaming, consists of chips for shopper gadgets corresponding to laptops, gaming PCs and sport consoles. The general phase rose 28% on an annual foundation to $2.9 billion. AMD mentioned gross sales for its laptop computer and PC chips, which it calls consumer income, surged 68% yr over yr due to sturdy demand for chips known as Zen 5 that the corporate launched final summer season.

Gaming gross sales, nevertheless, declined 30% on an annual foundation, which the corporate attributed to a lower in console chip income.

AMD’s embedded phase, which is usually gross sales from the corporate’s 2022 acquisition of Xilinx, declined 3% on an annual foundation to $823 million.