AMD(US:AMD) SINOLINK SECURITIES·2025-05-07 12:07Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [4]. Core Insights - The company reported Q1 2025 revenue of $7.438 billion, a year-on-year increase of 36%, with a GAAP net profit of $806 million, reflecting a significant year-on-year growth of 2139% [2]. - The company anticipates Q2 2025 revenue guidance of $7.4 billion, with a Non-GAAP gross margin of 43%, impacted by an $800 million inventory impairment loss due to MI308 sales restrictions [2][3]. - The data center and PC CPU segments showed strong growth, with revenues of $3.674 billion and $2.294 billion respectively, representing year-on-year increases of 57.21% and 67.69% [3]. - The gaming segment experienced a revenue decline of 29.83% due to the absence of new console releases [3]. - The company is expected to benefit from the ongoing iteration of its AI chip series, with significant revenue growth anticipated from the MI325X and upcoming MI350 series [3][4]. Summary by Sections Performance Review - In Q1 2025, the company achieved a GAAP gross margin of 50%, up 3 percentage points year-on-year, and a Non-GAAP gross margin of 54%, up 2 percentage points year-on-year [2]. Business Analysis - The data center business growth is attributed to the ramp-up of MI series AI chips and increased market share in server CPUs [3]. - The client segment's growth is driven by the bulk shipment of Zen5 Ryzen CPUs and preemptive inventory buildup due to tariffs [3]. - The company expects a total impact of $1.5 billion from AI chip sales restrictions, with $800 million expected in Q2 [3]. Profit Forecast and Valuation - Projected GAAP net profits for 2025, 2026, and 2027 are $2.614 billion, $3.827 billion, and $4.668 billion respectively, indicating strong growth potential [4].