Shares of Advanced Micro Devices (NASDAQ: AMD) climbed nearly 2% in pre-market trading on Wednesday after the chipmaker reported better-than-expected first-quarter results and issued bullish guidance for the current quarter, citing strong AI-related demand in its data center segment.
For the first quarter, AMD reported earnings per share of $0.96 on revenue of $7.44 billion. Both figures topped analyst estimates, which called for EPS of $0.95 and revenue of $7.11 billion. The company also posted a gross margin of 50%, up from 47% in the same quarter last year.
The standout segment was AMD’s data center unit, which saw revenue jump 57% year-over-year to $3.7 billion. The segment benefited from continued demand for its CPUs and GPUs, which are increasingly used to power AI and server infrastructure despite lingering restrictions on chip sales to China.
The Client and Gaming business also posted solid results, generating $2.94 billion in revenue, a 28% increase from the prior year. The Embedded segment was the lone weak spot, with revenue slipping 3% year-over-year to $823 million.
Looking ahead, AMD guided for second-quarter revenue of approximately $7.4 billion, plus or minus $300 million, above the Wall Street estimate of $7.24 billion—further reinforcing optimism around the company’s AI-driven growth trajectory.
Following the earnings report, Bernstein analysts, led by Stacy Rasgon, maintained a “Market Perform” rating on AMD shares, with a steady price target of $95.00.
Based on the latest update, Advanced Micro Devices (NASDAQ: AMD) shares are up 1.60%, trading at $100.20.
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David Kirakosyan is a seasoned financial journalist with nearly a decade of hands-on experience in covering the U.S. stock markets. Since 2016, he has written thousands of equity news articles, detailed market analyses, and investment insights for trusted platforms like Benzinga, Investing.com, and StreetInsider. David holds a Master of Science in Finance and is a Level 2 CFA® candidate, reflecting his deep commitment to financial expertise and ethical standards. His reporting combines real-world market experience with a strong academic foundation, helping readers make informed decisions backed by reliable information. Read Full Bio
