Key Takeaways AMD is expected to post strong Q2 gains from data center and client segment revenue growth.Data center growth is fueled by MI300 AI chips and rising demand from major cloud partners.Embedded revenues are forecasted to decline 4.9% year over year due to industrial market softness.Advanced Micro Devices (AMD) is expected to have benefited from strong Data Center revenues in the second quarter of 2025. The company’s second-quarter results are expected to be released on Aug. 5.AMD benefits from a ...

Key Takeaways AMD projects solid Q2 growth led by data center and client segment momentum.Increased demand for EPYC and Ryzen chips is expected to boost AMD's performance.Export restrictions on AI chip shipments to China pose a challenge for AMD this quarter.Advanced Micro Devices (AMD) is set to release its second-quarter 2025 results on Aug. 5.AMD expects second-quarter 2025 revenues of $7.4 billion (+/-$300 million). At the mid-point of the revenue range, this represents year-over-year growth of approxim ...

Core Viewpoint - Advanced Micro Devices (AMD) is expected to report first-quarter 2025 results on May 6, with projected revenues of $7.1 billion, indicating a year-over-year growth of approximately 30% and a sequential decline of about 7% [1] Revenue Estimates - The Zacks Consensus Estimate for AMD's first-quarter revenues is $7.12 billion, suggesting a year-over-year growth of 30.11% [2] - The consensus estimate for first-quarter earnings is 93 cents per share, reflecting a year-over-year growth of 50% [2] Segment Performance - AMD's data center segment is anticipated to see significant revenue growth, driven by strong sales of EPYC processors and demand for AI applications, with first-quarter revenues estimated at $3.4 billion, a year-over-year increase of 47.5% [5] - The client segment is also expected to grow, with revenues projected at $2.04 billion, indicating a year-over-year growth of 49.3% [6] - However, the embedded and gaming segments are expected to decline, with embedded revenues estimated at $570 million (a 0.9% decline) and gaming revenues at $509 million (a 38.1% decline) [7] Stock Performance - AMD shares have decreased by 17.9% year-to-date, underperforming the Zacks Computer and Technology sector's decline of 9% and the Computer – Integrated Systems industry's decline of 7.2% [8] Valuation Metrics - AMD's current valuation is considered stretched, with a forward 12-month price/sales ratio of 4.68X, compared to the industry average of 2.90X [11] Strategic Partnerships - AMD benefits from a strong partner base, including major companies like Microsoft, Oracle, Dell Technologies, and IBM, which enhances its market position [14] - The demand for AI accelerators, particularly the Instinct MI300 series, is expected to continue growing, further boosting data center revenues [15] Conclusion - AMD's expanding portfolio and strategic acquisitions are likely to improve top-line growth despite weaknesses in the embedded and gaming segments and competition from NVIDIA [18]