Advanced Micro Devices (AMD, Financial) has provided a robust revenue forecast, driven by the increasing demand for high-end computers capable of developing and running AI software. The company anticipates second-quarter sales of approximately $7.4 billion, surpassing analysts' average estimate of $7.23 billion.
AMD continues to make significant strides in the lucrative data center processor market, capturing market share from Intel. The company also benefits from strong demand for personal computer chips. CEO Lisa Su highlighted the accelerated growth over four consecutive quarters, attributed to the strong performance of core businesses and momentum in data center and AI expansion. Despite macroeconomic and regulatory uncertainties, AMD's first-quarter results and second-quarter outlook underscore the advantages of its differentiated product portfolio.
Following the earnings report, AMD's stock price rose over 6% in after-hours trading, having closed at $98.62 earlier. However, the stock has declined 18% year-to-date. In April, AMD anticipated expenses up to $800 million due to new restrictions imposed by the Trump administration, following an initial assessment of new licensing requirements for MI308 product exports.
AMD's first-quarter sales grew by 36% to $7.4 billion, exceeding expectations of $7.12 billion, with earnings per share, excluding certain items, at 96 cents.
