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AMD Reports Strong Q1 Results, Faces $1.5 Billion China Revenue Impact

The chipmaker exceeded earnings expectations and projected growth, while U.S. export restrictions on AI chips to China cast uncertainty on future revenue.

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Overview

  • AMD posted Q1 revenue of $7.44 billion, a 36% year-over-year increase, and adjusted EPS of $0.96, both surpassing analyst estimates.
  • The company forecast Q2 revenue of $7.1–$7.7 billion, above Wall Street expectations, despite accounting for an $800 million charge tied to new export controls.
  • U.S. restrictions on AI chip exports to China are projected to reduce AMD’s 2025 revenue by $1.5 billion, with significant impacts expected in Q2 and Q3.
  • Data center segment revenue surged 57% year-over-year to $3.7 billion, driven by strong demand for Epyc processors and Instinct GPUs.
  • Investor sentiment remains positive, bolstered by AMD’s raised guidance and robust AI-driven growth, even as policy uncertainty looms.