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Advanced Micro Devices (AMD) delivered first-quarter earnings that topped analysts’ estimates as sales from its data center segment surged.
The chipmaker reported revenue of $7.44 billion, up 36% year-over-year and ahead of the analyst consensus from Visible Alpha. Adjusted net income of $1.57 billion, or 96 cents per share, rose from $1.01 billion, or 62 cents per share, a year earlier, above Wall Street’s estimates.
The gains came as AMD’s data center sales climbed 57% to $3.67 billion, exceeding expectations.
“We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum,” said AMD CEO Lisa Su.
AMD shares wavered in after-hours trading following the release. The stock was down about 18% for 2025 through Tuesday’s close.
Looking ahead, AMD projected second-quarter revenue of $7.1 billion to $7.7 billion. Analysts had called for $7.3 billion.
The company warned its results would be affected by charges of roughly $800 million related to tightening restrictions on sales of its chips to China. Competitor Nvidia (NVDA) has also said it expects a potential $5.5 billion charge related to limits on exports of its H20 chip.
“Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution positioning us well for strong growth in 2025,” Su said.
This article has been updated since it was first published to reflect more recent share price values.
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