AMD crushes Q1 estimates sends shares soaring

AMD beat money experts with its first quarter results for 2025. The company earned 96 cents per share with $7.44 billion in sales. AMD expects $7.4 billion next quarter despite facing $800 million in costs from trade limits on AI chips. Company shares rose 3.8% after the news came out.

Data centers brought AMD 3.7 billion, growing 57% from last year, thanks to strong CPU and GPU sales. The company keeps taking business from Intel as its rival struggles. Personal computer chip sales jumped 28% as people bought more Zen 5 processors. AMD sold $2.3 billion worth of CPUs compared to $1.4 billion last year, though gaming graphics card sales fell $300 million to $600 million.

Overall sales grew 36% to a new record of $7.4 billion. Higher-priced Ryzen chips helped AMD reach 50% profit margins. The company made $800 million in operating income using standard accounting rules. Working with Oracle to provide data center parts boosted AMD's growth. Markets reacted badly to the earnings call despite the good numbers, erasing earlier stock gains.
 

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