AMD (AMD) Reports Strong Q1 Growth with Focus on AI and Data Center Expansion

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May 07, 2025
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  • Advanced Micro Devices (AMD, Financial) reports a 36% surge in Q1 2025 revenue, reaching $7.4 billion.
  • Data center sales contribute significantly with a 57% increase, boosting EPS by 55%.
  • Analysts forecast a potential 35.97% upside based on current price targets.

Advanced Micro Devices (NASDAQ: AMD) has unveiled its first-quarter 2025 financial results, showcasing a remarkable growth trajectory. The company's revenue soared by 36% to $7.4 billion, fueled by a significant 57% upswing in data center sales. This growth was underpinned by robust demand for EPYC processors and the successful rollout of AI processors, driving a 55% increase in earnings per share (EPS) to $0.96.

Wall Street Analysts' Insights and Forecasts

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Analyst projections for Advanced Micro Devices Inc (AMD, Financial) indicate a promising future. The average price target set by 40 analysts stands at $134.10, with forecasts ranging from a low of $70.00 to a high of $200.00. This suggests a potential upside of 35.97% from the current trading price of $98.62. For more comprehensive estimates, visit the Advanced Micro Devices Inc (AMD) Forecast page.

The consensus from 51 brokerage firms places AMD at an average recommendation of 2.3, translating to an "Outperform" rating. This scale ranges from 1 (Strong Buy) to 5 (Sell), signifying a bullish sentiment towards AMD's stock performance.

Valuation and Future Outlook

According to GuruFocus, the projected GF Value for AMD in one year is $163.53, indicating a potential upside of 65.82% from the current price of $98.62. The GF Value represents GuruFocus' estimate of the stock's fair trading value, computed using historical trading multiples, past business growth, and future performance estimates. Investors can access further detailed information on the Advanced Micro Devices Inc (AMD, Financial) Summary page.

In summary, Advanced Micro Devices continues to demonstrate strong growth prospects and favorable analyst sentiment, making it a compelling watch for investors looking to capitalize on its potential market expansion.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.