AMD Q1 2025 Earnings

Call Details

• Call Title: Advanced Micro Devices Q1 2025 Earnings Call
• Date: May 6, 2025 at 9:00 PM UTC
• Management Team:
  • Lisa Su (Chair and Chief Executive Officer)
  • Jean Hu (Executive Vice President, Chief Financial Officer, and Treasurer)
  • Matt Ramsay (Vice President, Financial Strategy and Investor Relations)
  • Mark Papermaster (Executive Vice President and Chief Technology Officer)

Call Summary

Financial Performance

• First quarter revenue was $7.4B, up 36% year-over-year.
• Data center segment revenue was $3.7B, up 57% year-over-year and down 5% sequentially.
• Client and gaming combined segment revenue was $2.9B, up 28% year-over-year and up 2% sequentially.
• Growth margin was 54%, representing an increase of 140 basis points year-over-year.
• Operating expenses were $2.2B, up 28% year-over-year, reflecting increased R&D and go-to-market investments.
• Operating income was $1.8B, representing a 24% operating margin for the quarter.
• Diluted EPS was $0.96, up 55% year-over-year on a non-GAAP basis as the call referred primarily to non-GAAP measures.
• Embedded segment revenue was $823M, down 3% year-over-year and down 11% sequentially.

Guidance

• Second quarter revenue is expected to be approximately $7.4B plus or minus $300M, inclusive of an estimated $700M reduction due to a new export license requirement for MI308 shipments to China.
• The midpoint of the Q2 revenue guidance implies 27% year-over-year growth at the company level.
• AMD estimates the full-year 2025 revenue impact from the export license requirement to be approximately $1.5B.
• Second quarter non-GAAP growth margin is estimated to be 43% inclusive of approximately $800M in charges for inventory and related reserves.
• Excluding the approximately $800M charge in Q2, AMD stated non-GAAP growth margin would be approximately 54%.
• Second quarter non-GAAP operating expenses are estimated to be approximately $2.3B, which includes approximately $50M in OPEX related to the ZT Systems design team.
• Non-GAAP effective tax rate for Q2 is expected to be 13% and diluted share count is expected to be approximately 1.64B shares, including 9M shares related to the ZT transaction.