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3d ago

AMD Reports Strong Q1 Earnings but Warns of $1.5 Billion Revenue Hit from U.S. Export Curbs

The chipmaker exceeded expectations with 36% revenue growth, driven by a 57% surge in data center sales, but faces significant regulatory challenges impacting its 2025 outlook.

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Overview

  • AMD surpassed analyst estimates for Q1 FY2025 with adjusted earnings per share of $0.96 and revenue of $7.44 billion, marking a 36% year-over-year revenue increase.
  • The data center segment saw a 57% annual growth, generating $3.7 billion in revenue, fueled by strong demand for EPYC processors and Instinct GPUs.
  • The company expects a $1.5 billion revenue impact in 2025 due to U.S. export restrictions on AI chips, including an $800 million charge in Q1 tied to inventory write-offs and related costs.
  • AMD provided Q2 guidance of $7.1–$7.7 billion in revenue with a 43% gross margin, reflecting ongoing challenges from geopolitical trade tensions.
  • Despite the regulatory headwinds, AMD highlighted robust AI and data center momentum, positioning the company for continued growth against competitors like Nvidia.