TLDR
- AMD will report Q1 2025 earnings on May 6, with analysts expecting revenue of $7.12-7.13 billion (30% YoY growth)
- Projected earnings per share of $0.93-0.94, up 52% from same quarter last year
- AMD recently closed $4.9 billion acquisition of ZT Systems to boost AI capabilities
- Stock down 18% in 2025 due to China export restrictions and competition concerns
- Analysts have mixed views: 15 Buys, 7 Holds, average price target of $126.74 (28.28% upside)
AMD is set to report its first quarter 2025 earnings tomorrow, May 6, after market close. Wall Street analysts expect the chipmaker to post strong results with revenue growth of about 30% year-over-year.
The company is projected to report revenue between $7.12-7.13 billion, compared to the same quarter last year. This marks a significant improvement from the modest 2.2% increase reported in Q1 2024.
Earnings per share are expected to reach $0.93-0.94, representing a 52% jump from the year-ago quarter. AMD has a strong track record, having missed earnings estimates only twice in the past nine quarters.
The chipmaker’s stock has faced challenges in 2025, declining 18% year-to-date. This drop stems from new U.S. export restrictions to China, competition from Nvidia, and tariff concerns.
Despite these headwinds, AMD has been making strategic moves to strengthen its position in the growing artificial intelligence market.
Strategic AI Expansion
Last month, AMD completed its $4.9 billion acquisition of ZT Systems, a manufacturer of hyperscale servers. This deal combines AMD’s chips and networking technology with ZT’s expertise in building large server systems and AI setups.
The acquisition is expected to accelerate the design and deployment of large AI clusters, enhancing AMD’s competitive position in the rapidly expanding AI infrastructure space.
This move follows AMD’s strong performance in the data center segment. According to Main Street Data, the company’s data center revenue surged 69% year-over-year to $3.86 billion in Q4 2024.
Mixed Analyst Outlook
Analyst opinions on AMD remain divided ahead of the earnings announcement. Seaport Research analyst Jay Goldberg recently initiated coverage with a Buy rating and a $100 price target.
Goldberg cited AMD’s growing footprint in the data center space and its expanding role in artificial intelligence as key factors supporting his positive outlook.
In contrast, Bernstein analyst Stacy Rasgon maintained a Hold rating while lowering his price target to $95 from $125. Rasgon highlighted several challenges facing AMD, including U.S. restrictions on AI chip sales to China.
He also pointed to higher costs from the ZT Systems acquisition and weak demand in PCs, gaming, and embedded markets as reasons for caution.
The overall analyst consensus on TipRanks shows a Moderate Buy rating based on 22 analyst opinions—15 Buys and seven Holds, with no Sells. The average price target stands at $126.74, suggesting a potential upside of 28.28% from current levels.
Options traders are preparing for volatility around the earnings release. According to TipRanks’ Options tool, traders are expecting an 8.70% move in either direction following the announcement.
AMD shares are currently trading at around $99.08, having risen 18.5% over the past month. This performance is in line with the broader processors and graphics chips segment, which has seen share prices increase by an average of 18.7% during the same period.
Looking at AMD’s competitors, results have been mixed. Qorvo reported a 7.6% year-over-year decrease in revenues but beat expectations by 2.2%, while Intel posted flat revenue that topped estimates by 2.6%.
The market reaction to these results varied widely, with Qorvo shares trading up 14.4% following the announcement, while Intel was down 6.7%.
AMD has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average. In its most recent quarter, AMD beat revenue expectations by 1.5%, reporting $7.66 billion in revenue, up 24.2% year-on-year.
The upcoming earnings report will provide crucial insights into AMD’s ability to execute its AI strategy and maintain growth momentum in a challenging market environment.
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