Advanced Micro Devices (AMD) reported its quarterly earnings, meeting Wall Street expectations but missing the more optimistic projections of some analysts. Although AMD’s forecast for its MI300 artificial-intelligence accelerator product increased to over $4 billion from the previous estimate of $3.5 billion, this did not meet earlier projections of around $6 billion. Consequently, AMD shares fell by approximately 7% in after-hours trading.
For the first quarter, AMD reported:
- Net income: $123 million, or 7 cents per share, compared to a loss of $139 million, or 9 cents per share, in the previous year.
- Adjusted earnings per share: 62 cents, which matched analysts’ expectations.
- Revenue: $5.5 billion, up from $5.35 billion, and in line with analysts’ consensus of $5.48 billion.
The data center segment stood out with revenue of $2.3 billion, marking an 80% year-over-year increase. However, the gaming and embedded segments experienced significant declines of 48% and 46%, respectively.
AMD’s second-quarter revenue forecast is $5.7 billion, plus or minus $300 million, which aligns with analysts’ estimates. The projected non-GAAP gross margin is around 53%.
Despite strong growth in the data center segment, AMD’s stock experienced a decline, partially attributed to competition from Nvidia’s new Blackwell chip and potential delays in customer orders due to high-bandwidth memory shortages. CEO Lisa Su emphasized the company’s strong demand and progress, while highlighting continued expansion in the AI hardware and software roadmaps