In This Article:
Advanced Micro Devices AMD is expected to have benefited from strong Data Center revenues in the first quarter of 2025. The company’s first-quarter results are expected to be released on May 6.
AMD benefits from a robust product portfolio and expanding partner base. The company continues to strengthen its footprint in the enterprise data center arena by leveraging the power of fourth-generation EPYC CPUs.
AMD’s expanding portfolio, which includes Instinct MI300X Series data center AI accelerators and the Versal RF Series Adaptive SoCs, has been noteworthy. Partners like Dell Technologies, HPE, Lenovo and Supermicro all have the Instinct platforms in production.
The Zacks Consensus Estimate for first-quarter Data Center revenues is pegged at $3.4 billion, indicating an impressive year-over-year surge of 47.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).
Advanced Micro Devices, Inc. Price and EPS Surprise
Advanced Micro Devices, Inc. price-eps-surprise | Advanced Micro Devices, Inc. Quote
Click here to know how AMD’s overall first-quarter performance is likely to be.
Expanding Portfolio to Aid AMD’s Client Revenues in Q1
AMD’s expanding portfolio and rich partner base have been key catalysts in driving client segment revenues.
The company is likely to see continued growth in its client business, driven by higher demand for AMD Ryzen processors across desktop and mobile platforms.
Moreover, AMD’s collaborations, such as the one with Dell Technologies for Ryzen Pro processors in commercial PCs, are expected to have bolstered growth in this segment in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter Client segment revenues is pegged at $2.04 billion, indicating year-over-year growth of 49.34%.
AMD’s Gaming & Embedded Segments to Decline Y/Y
AMD’s Gaming segment is expected to have declined in the first quarter of 2025. Semi-custom sales are expected to fall as major partners continue to reduce channel inventory. This is expected to have reduced revenues on a year-over-year basis.
The consensus mark for Gaming revenues is pegged at $570 million, suggesting a massive 38.1% decline.
AMD’s Embedded segment is expected to have suffered from ongoing softness in the industrial and communication markets. The Zacks Consensus Estimate for first-quarter Embedded revenues is pegged at $838 million, indicating a 0.9% year-over-year decline.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.
Advanced Micro Devices currently has an Earnings ESP of +0.74% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.