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Will AMD Stock Climb on Strong Data Center Revenues in Q1 Earnings?
ZACKSยท 2025-05-05 16:20
Core Insights - Advanced Micro Devices (AMD) is anticipated to report strong Data Center revenues for Q1 2025, with results expected on May 6 [1] - The company is benefiting from a robust product portfolio and an expanding partner base, particularly in the enterprise data center sector [1][2] Data Center Segment - The Zacks Consensus Estimate for Q1 Data Center revenues is $3.4 billion, reflecting a significant year-over-year increase of 47.5% [2] - AMD's product offerings, including the Instinct MI300X Series AI accelerators, are being utilized by major partners like Dell Technologies, HPE, Lenovo, and Supermicro [2] Client Segment - AMD's expanding portfolio is expected to drive client segment revenues, with a projected growth in demand for AMD Ryzen processors across desktop and mobile platforms [4] - The Zacks Consensus Estimate for Q1 Client segment revenues is $2.04 billion, indicating a year-over-year growth of 49.34% [5] Gaming and Embedded Segments - The Gaming segment is projected to decline in Q1 2025, with revenues expected to drop to $570 million, a 38.1% decrease year-over-year due to reduced channel inventory from major partners [6][7] - The Embedded segment is also expected to face challenges, with revenues estimated at $838 million, reflecting a 0.9% year-over-year decline due to softness in industrial and communication markets [7] Earnings Outlook - AMD currently has an Earnings ESP of +0.74% and a Zacks Rank of 3, indicating a potential for an earnings beat [8]