Technology

AMD (AMD) reported Q1 non-GAAP earnings Tuesday of $0.62 per diluted share, up from $0.60 a year earlier. Analysts surveyed by Capital IQ expected $0.61. Revenue in the quarter ended March 30 rose to $5.47 billion from $5.35 billion a year earlier. Analysts surveyed by Capital IQ expected $5.45 billion. The company expects Q2 revenue of $5.7 billion, plus or minus $300 million. Analysts surveyed by Capital IQ project $5.69 billion. AMD shares fell 2.9% in recent after-hours activity.

The following is a summary of the Advanced Micro Devices, Inc. (AMD) Q1 2024 Earnings Call Transcript: Financial Performance: AMD reported a Q1 2024 revenue of $5.5bn, an increase from the previous year, with growth driven by data center and client segment sales. The company expanded their gross margin by over 2 percentage points. Data center segment revenue grew by 80% YoY to a record $2.3bn, primarily driven by AMD Instinct MI300X GPU shipments and a double-digit percentage increase in server CPU sales. Client segment revenue increased by 85% YoY on strong demand for their Ryzen processors. Despite YoY revenue declines in Gaming and Embedded segments (48% and 46% respectively), AMD still reported a net YoY revenue increase. Business Progress: AMD is ramping up their data center business and enabling AI capabilities across their product portfolio. The launch of their second-generation Versal adaptive SoCs and Spartan Ultrascale+ FPGA family marks

By Brian Swint AMD stock was falling early Wednesday after disappointing investors on guidance for sales of processors used in data centers. It could be a warning for Nvidia. Both semiconductor makers have benefited from the excitement around artificial intelligence and enjoy strong valuations. That’s based on high expectations for future growth as companies invest in more computing power to run AI software. For AMD, those expectations weren’t met. Even though earnings were in line, its new guidance for data-center chips of $4 billion was seen as lowball. While still higher than the previous estimate of $3.5 billion, some analysts were predicting that it should be much higher. “We are firm believers in AMD’s revitalized product roadmap strategy, and product traction is compelling,” said KeyBanc strategists led by John Vinh. “However, expectations for share gains and growth are high. We’re concerned that any moderate downtick to expectations could add substantial

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We keep our 12-month target at $200, on P/E of 36.8x our ’25 EPS view, below 5-year historical average/above peers. We adjust our ’24 EPS estimate to $3.54 from $4.10 but keep ’25 at $5.44. AMD posts Q1 EPS of $0.62 vs. $0.60, beating the $0.61 consensus. Sales rose 2% and provided Q2 outlook (+6% Y/Y) largely in line with expectations, as investors were hoping for more amid a strong AI capex environment. Still, Data Center momentum (+80%) remains strong, as it incrementally boosts ’24 GPU server outlook ($4B from $3.5B) given better MI300X visibility from cloud players (Microsoft, Meta, Oracle) and enterprise momentum. Easy comparisons and PC recovery drove Client (+85%), while we expect an enterprise refresh cycle for AI PCs to start in the 2H.