Advanced Micro Devices (NASDAQ:AMD) Posts Earnings Results, Beats Estimates By $0.07 EPS

Advanced Micro Devices (NASDAQ:AMD) released its quarterly earnings data on Tuesday. The semiconductor manufacturer reported $1.37 EPS for the quarter, beating the consensus estimate of $1.30 by $0.07, FiscalAI reports. The firm had revenue of $10.25 billion for the quarter, compared to the consensus estimate of $9.90 billion. Advanced Micro Devices had a net margin of 12.52% and a return on equity of 8.84%. The company’s quarterly revenue was up 37.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.96 earnings per share.

Here are the key takeaways from Advanced Micro Devices’ conference call:

• Q1 results beat guidance with revenue of $10.3 billion (+38% YoY), record free cash flow of $2.6 billion, and data center revenue up 57%, marking a structural inflection in growth.
• Strong data center AI momentum — broadened Instinct adoption, multi‑generation deals (notably with Meta and OpenAI), MI450 sampling and Helios rack platform on track for H2 ramp, and a target of tens of billions in annual DC AI revenue by 2027.
• AMD raised its server CPU outlook, now expecting server CPU TAM to grow at >35% annually to over $120 billion by 2030 and server CPU revenue to grow >70% YoY in Q2, driven by upcoming Venice (Zen 6 / 2nm) and a new AI‑focused Verano SKU.
• Gross margin expanded to 55% (Q2 guide ~56%) but OpEx is up 42% YoY as R&D ramps for AI; MI450/Helios are below corporate average margin and may pressure H2 margins even as AMD targets a long‑term 55–58% range.
• Client and gaming face near‑term headwinds from rising memory and component costs — AMD sees second‑half PC and gaming demand weakness and expects gaming revenue to decline >20% in H2 versus H1.

Advanced Micro Devices Stock Up 4.0%

AMD stock traded up $13.72 during trading on Tuesday, reaching $355.26. 56,120,479 shares of the stock were exchanged, compared to its average volume of 40,296,296. The company has a current ratio of 2.85, a quick ratio of 2.01 and a debt-to-equity ratio of 0.04. Advanced Micro Devices has a twelve month low of $96.88 and a twelve month high of $362.79. The firm’s 50 day moving average is $232.51 and its 200 day moving average is $228.39. The firm has a market cap of $579.19 billion, a P/E ratio of 134.06, a price-to-earnings-growth ratio of 1.23 and a beta of 2.40.

Insider Buying and Selling at Advanced Micro Devices

In other Advanced Micro Devices news, EVP Forrest Eugene Norrod sold 19,450 shares of the company’s stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $216.81, for a total transaction of $4,216,954.50. Following the transaction, the executive vice president owned 289,098 shares in the company, valued at approximately $62,679,337.38. This represents a 6.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, EVP Paul Darren Grasby sold 7,500 shares of the firm’s stock in a transaction on Wednesday, March 11th. The shares were sold at an average price of $204.87, for a total transaction of $1,536,525.00. Following the completion of the transaction, the executive vice president directly owned 129,598 shares in the company, valued at $26,550,742.26. This trade represents a 5.47% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 304,672 shares of company stock worth $70,135,070. Company insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of AMD. Wilkerson Advisory Group LLC purchased a new position in Advanced Micro Devices during the fourth quarter worth about $33,000. Wealth Watch Advisors INC purchased a new stake in Advanced Micro Devices in the 3rd quarter valued at about $41,000. Resources Management Corp CT ADV bought a new position in shares of Advanced Micro Devices during the 4th quarter worth approximately $43,000. FSA Wealth Management LLC boosted its stake in shares of Advanced Micro Devices by 32.3% in the 3rd quarter. FSA Wealth Management LLC now owns 287 shares of the semiconductor manufacturer’s stock worth $46,000 after buying an additional 70 shares during the last quarter. Finally, IFC & Insurance Marketing Inc. purchased a new position in shares of Advanced Micro Devices in the 4th quarter worth approximately $50,000. Hedge funds and other institutional investors own 71.34% of the company’s stock.

Key Advanced Micro Devices News

Here are the key news stories impacting Advanced Micro Devices this week:

• Positive Sentiment: Q1 beat and strong AI-driven data‑center growth — AMD reported $1.37 EPS vs. $1.30 consensus and revenue of ~$10.25B, with data‑center sales jumping sharply; the company gave second‑quarter revenue guidance that came in above Street expectations, signaling continued AI demand. Read More.
• Positive Sentiment: CEO commentary and ecosystem moves bolster the AI case — management highlighted robust demand for EPYC CPUs and Instinct GPUs, while AMD is investing in adjacent AI infrastructure (seed investment in RadixArk; partnerships like Zyphra) that expand TAM for its accelerators. Read More.
• Neutral Sentiment: Options and volatility priced in — heavy options activity ahead of/after the print shows traders were positioned for a big move; that amplifies intraday swings even after a beat. Read More.
• Neutral Sentiment: Some analysts raise targets amid the beat — select firms (e.g., Wedbush) have lifted price targets, reflecting stronger revenue trajectories, which supports upside but also highlights divergent Street views. Read More.
• Negative Sentiment: Valuation and supply constraints remain key risks — several analysts warned the recent rally left limited margin for error; HSBC downgraded to Hold pointing to valuation and production limits (CoWoS/packaging bottlenecks). That caution pressures investors who need near‑term proof the demand can scale. Read More.
• Negative Sentiment: Sell‑the‑news and margin/CapEx watch — some commentators flagged elevated CapEx and the risk of mean‑reversion after a steep run‑up; investors will focus on margin commentary and whether AMD can convert demand into shipments without worsening costs. Read More.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on AMD. Morgan Stanley reduced their target price on Advanced Micro Devices from $260.00 to $255.00 and set an “equal weight” rating on the stock in a report on Wednesday, February 4th. Wall Street Zen raised shares of Advanced Micro Devices from a “hold” rating to a “buy” rating in a research note on Monday, January 26th. Jefferies Financial Group reiterated a “buy” rating on shares of Advanced Micro Devices in a report on Tuesday, February 24th. Phillip Securities upgraded Advanced Micro Devices from a “moderate buy” rating to a “strong-buy” rating in a research report on Sunday, February 8th. Finally, UBS Group set a $310.00 price target on shares of Advanced Micro Devices in a research report on Wednesday, February 4th. One analyst has rated the stock with a Strong Buy rating, thirty have given a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, Advanced Micro Devices has a consensus rating of “Moderate Buy” and an average target price of $303.84.

About Advanced Micro Devices

Advanced Micro Devices, Inc (NASDAQ: AMD) is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company’s product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.