AMD surges on stronger-than-expected Q1 performance.


Chipmaker AMD delivered a stronger‑than‑expected set of first‑quarter results on Tuesday, with demand for artificial‑intelligence hardware continuing to drive rapid growth.

Microchip

Source: Sharecast

AMD said Q1 adjusted earnings came in at $1.37 per share, ahead of the $1.29 consensus, as revenue surged 38% year‑on‑year to $10.25bn from $7.44bn.

The California-based firm highlighted that its data‑centre division remained the standout performer in Q1, with sales jumping 57% to $5.8bn as customers ramped up investment in AI‑focused computing.

AMD's client segment brought in $2.9bn versus expectations of $2.73bn, while its gaming business reported revenues of $720m, ahead of Wall Street expectations of $668m.

Net income more than doubled to $1.38bn, or $0.84 per share, compared with $709m, or $0.44 per share, a year earlier, reflecting both stronger volumes and improved mix.

Looking ahead, AMD also struck an upbeat tone, guiding for second‑quarter revenue of between $10.9bn and $11.5bn - comfortably ahead of market expectations of $10.52bn - as AI‑related demand showed little sign of slowing down.

As of 1130 BST, AMD shares had surged 16.54% in pre-market action to $414 each.

Reporting by Iain Gilbert at Sharecast.com


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