Advanced Micro Devices (NASDAQ:AMD) Posts Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Advanced Micro Devices (NASDAQ:AMD) announced its quarterly earnings data on Tuesday. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating the consensus estimate of $1.29 by $0.08, FiscalAI reports. Advanced Micro Devices had a return on equity of 8.84% and a net margin of 12.52%.The business had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. During the same period in the previous year, the business earned $0.96 earnings per share. The business’s revenue was up 37.8% on a year-over-year basis.

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 Trading Up 4.0%

Shares of NASDAQ AMD opened at $355.26 on Wednesday. The business’s 50 day moving average is $235.61 and its two-hundred day moving average is $229.21. The company has a debt-to-equity ratio of 0.04, a current ratio of 2.85 and a quick ratio of 2.01. Advanced Micro Devices has a 1-year low of $96.88 and a 1-year high of $362.79. The stock has a market capitalization of $579.19 billion, a P/E ratio of 134.06, a PEG ratio of 1.23 and a beta of 2.40.

Key Stories Impacting Advanced Micro Devices

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

• Positive Sentiment: Q1 beat and bullish guidance — AMD reported above-consensus Q1 results and raised Q2 revenue guidance (roughly $10.9B–$11.5B / ~$11.2B midpoint), driven by a big jump in data-center (AI) sales; that beat-and-raise is the primary catalyst for the rally. Read More.
• Positive Sentiment: AI & data-center demand conviction — Management highlighted strong EPYC/Instinct adoption and secured memory supply for AI deployments, supporting multi?quarter revenue visibility for server CPUs and accelerators. Read More.
• Positive Sentiment: Analyst upgrades and higher price targets — Multiple firms raised ratings/targets (Goldman, Truist, Wedbush, Bernstein among others), adding momentum and buy-side conviction after the results. Read More.
• Neutral Sentiment: Macro tailwind — improved risk sentiment from reports of progress toward a U.S.?Iran deal lifted futures and helped tech names broadly, amplifying AMD’s earnings move. Read More.
• Neutral Sentiment: Partnerships & ecosystem traction — recent cloud and partner announcements (e.g., Zyphra, Riot expansions) validate product wins but are longer?lead revenue signals rather than immediate upside. Read More.
• Negative Sentiment: Supply?chain and production constraints — analysts and industry write?ups flag packaging (CoWoS) bottlenecks and capacity limits that could cap near?term fulfillment, a key reason some investors remain cautious. Read More.
• Negative Sentiment: Valuation and profit?taking concerns — HSBC and others flagged valuation/peak expectations ahead of earnings; notable insider/institutional selling and rotations have been reported, creating downside risk if guidance or margins slip. Read More.
• Negative Sentiment: Near?term margin/price risks — management noted that rising memory/pricing dynamics could pressure PC/gaming end markets even as AI/data?center revenue accelerates, which investors will watch for in upcoming quarters. Read More.

Insider Buying and Selling

In other Advanced Micro Devices news, EVP Paul Darren Grasby sold 7,500 shares of the business’s stock in a transaction that occurred on Wednesday, March 11th. The stock was sold at an average price of $204.87, for a total transaction of $1,536,525.00. Following the sale, the executive vice president directly owned 129,598 shares of the company’s stock, valued at $26,550,742.26. The trade was a 5.47% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Forrest Eugene Norrod sold 19,450 shares of the business’s stock in a transaction that occurred on Wednesday, February 11th. The stock was sold at an average price of $216.81, for a total value of $4,216,954.50. Following the sale, the executive vice president directly owned 289,098 shares in the company, valued at $62,679,337.38. The trade was a 6.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 304,672 shares of company stock valued at $70,135,070. Insiders own 0.50% of the company’s stock.

Institutional Investors Weigh In On Advanced Micro Devices

Several large investors have recently added to or reduced their stakes in AMD. Wellington Management Group LLP increased its stake in Advanced Micro Devices by 335.9% during the third quarter. Wellington Management Group LLP now owns 4,847,825 shares of the semiconductor manufacturer’s stock worth $784,330,000 after acquiring an additional 3,735,807 shares during the last quarter. Rafferty Asset Management LLC boosted its position in shares of Advanced Micro Devices by 56.0% during the second quarter. Rafferty Asset Management LLC now owns 6,772,923 shares of the semiconductor manufacturer’s stock valued at $961,078,000 after buying an additional 2,430,533 shares during the period. Amundi boosted its holdings in shares of Advanced Micro Devices by 17.4% in the fourth quarter. Amundi now owns 15,828,895 shares of the semiconductor manufacturer’s stock valued at $3,389,916,000 after purchasing an additional 2,342,668 shares during the period. Viking Global Investors LP boosted its holdings in shares of Advanced Micro Devices by 118.8% in the third quarter. Viking Global Investors LP now owns 4,181,269 shares of the semiconductor manufacturer’s stock valued at $676,488,000 after purchasing an additional 2,270,698 shares during the period. Finally, State Street Corp boosted its holdings in shares of Advanced Micro Devices by 2.4% in the third quarter. State Street Corp now owns 73,824,441 shares of the semiconductor manufacturer’s stock valued at $11,944,056,000 after purchasing an additional 1,755,182 shares during the period. 71.34% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. HSBC downgraded Advanced Micro Devices from a “buy” rating to a “hold” rating and boosted their price objective for the company from $335.00 to $340.00 in a research report on Monday. Truist Financial set a $283.00 target price on Advanced Micro Devices in a report on Wednesday, February 4th. Wells Fargo & Company reaffirmed an “overweight” rating and issued a $345.00 target price on shares of Advanced Micro Devices in a report on Friday, January 30th. Wall Street Zen raised Advanced Micro Devices from a “hold” rating to a “buy” rating in a report on Monday, January 26th. Finally, UBS Group set a $310.00 target price on Advanced Micro Devices in a report on Wednesday, February 4th. One research analyst has rated the stock with a Strong Buy rating, thirty-two have issued a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $314.92.

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.