Advanced Micro Devices gains as CPU and GPU demand drive better-than-expected Q2 sales guidance
Advanced Micro Devices is powering higher in postmarket trading after reporting Q1 results that exceeded expectations across the board along with Q2 sales guidance higher than what Wall Street had penciled in.
In Q1, the Lisa Su-run company reported:
Revenue of $10.2 billion (compared to analyst estimates of $9.9 billion and guidance for $9.5 billion to $10.1 billion).
Adjusted earnings per share of $1.37 (estimate: $1.28).
For Q2, management projected sales in a range of $10.9 billion to $11.5 billion (estimate: $10.5 billion) with an adjusted gross margin of about 56% (estimate: 55.3%).
Customer engagement for AMD’s AI chips and racks is “strengthening,” according to CEO and Chair Lisa Su, with “leading customer forecasts exceeding our initial expectations and a growing pipeline of large-scale deployments providing us with increasing visibility into our growth trajectory.”
The chip giant is not just the No. 2 in GPUs but also CPUs, which appear to be in shortage thanks to compute demands of AI agents.
AMD was up 80% from March 30 through Tuesday’s close, and its 250% gain over the past year has left Nvidia and Broadcom’s 70% and 110% rallies, respectively, in the dust.
