AMD(US:AMD)2025-05-06 20:16Financial Performance - First quarter 2025 revenue was $7.4 billion, a 36% increase year-over-year, with a gross margin of 50%[2] - Net income for Q1 2025 was $709 million, a 476% increase compared to $123 million in Q1 2024[5] - Non-GAAP gross margin for Q1 2025 was 54%, with operating income of $1.8 billion on a non-GAAP basis[2][6] - Net revenue for Q1 2025 was $7,438 million, a decrease of 2.9% from $7,658 million in Q4 2024 and an increase of 35.8% from $5,473 million in Q1 2024[23] - Gross profit for Q1 2025 was $3,736 million, resulting in a gross margin of 50%, compared to 51% in Q4 2024 and 47% in Q1 2024[23] - Operating income for Q1 2025 was $806 million, up from $871 million in Q4 2024 and significantly higher than $36 million in Q1 2024[23] - Net income for Q1 2025 was $709 million, compared to $482 million in Q4 2024 and $123 million in Q1 2024, with diluted earnings per share of $0.44[23] - Adjusted EBITDA for the three months ended March 29, 2025, was $1,954 million, a decrease of 11.7% from $2,212 million in the previous quarter and an increase of 51.0% from $1,295 million year-over-year[30] - Free cash flow for the three months ended March 29, 2025, was $727 million, a decrease of 33.3% from $1,091 million in the previous quarter and an increase of 92.2% from $379 million year-over-year[31] - Operating cash flow margin for the three months ended March 29, 2025, was 13%, down from 17% in the previous quarter and up from 10% year-over-year[31] Segment Performance - Data Center segment revenue reached $3.7 billion, up 57% year-over-year, driven by AMD EPYC™ CPU and AMD Instinct™ GPU sales[10] - Client revenue was $2.3 billion, up 68% year-over-year, primarily due to strong demand for "Zen 5" AMD Ryzen™ processors[10] - The Data Center segment generated $3,674 million in revenue, down 4.8% from $3,859 million in the previous quarter but up 57.4% from $2,337 million year-over-year[26] - The Client and Gaming segment reported total revenue of $2,941 million, an increase of 2.3% from $2,876 million in the previous quarter and an increase of 28.5% from $2,290 million year-over-year[26] Cash and Assets - Cash and cash equivalents increased to $6,049 million in Q1 2025 from $3,787 million in Q4 2024[24] - Total assets rose to $71,550 million in Q1 2025, up from $69,226 million in Q4 2024[24] - Total assets increased to $71,550 million as of March 29, 2025, compared to $69,226 million in the previous quarter and $67,895 million year-over-year[26] - Total debt rose to $4,164 million as of March 29, 2025, compared to $1,721 million in the previous quarter and $2,468 million year-over-year[26] Strategic Initiatives - AMD closed the acquisition of ZT Systems to enhance its capabilities in the $500 billion data center AI accelerator market by 2028[10] - AMD expanded strategic partnerships to deliver AI solutions and enhance developer tools, including collaborations with major tech companies[10] - The acquisition of ZT Systems is anticipated to provide significant opportunities in the data center AI accelerator market by 2028[21] - AMD expects strong growth in 2025 driven by its differentiated product portfolio and consistent execution[21] Future Outlook - AMD expects Q2 2025 revenue to be approximately $7.4 billion, plus or minus $300 million, with a non-GAAP gross margin estimated at 43%[13] - AMD utilized a non-GAAP tax rate of 13% for fiscal 2025, which excludes the tax impact of pre-tax non-GAAP adjustments[21] Product Development - New AMD EPYC Embedded 9005 Series processors were introduced, targeting networking, storage, and industrial edge markets[10] - AMD's operating income increased by 2,139% year-over-year, reflecting significant earnings leverage as the business scales[3] - Capital expenditures for the three months ended March 29, 2025, were $212 million, slightly up from $208 million in the previous quarter and up from $142 million year-over-year[26]