Advanced Micro Devices (AMD) delivered a strong Q1 report, with CEO Lisa Su striking a confident tone around AI-driven demand, even as export controls to China threaten to slow future gains. Revenue jumped 36% year-over-year to $7.44 billion in Q1, beating expectations, while adjusted EPS came in at $0.96. The gains were powered by a 57% surge in data center sales, which hit $3.7 billion on the back of soaring AI interest. Following the earnings announcement, AMD stock rose around 1.8% in after-hours trading.
Su called it an “outstanding start to 2025” and said AMD’s growth is being fueled by expanding “data center and AI momentum.” She added that this marks the fourth straight quarter of accelerating gains—driven by strong demand across core business lines.
For Q2, the company forecasts revenue ranging from $7.1 billion to $7.7 billion, exceeding the analysts’ average estimate of $7.24 billion, and anticipates robust double-digit revenue growth for 2025.
China Curbs Could Cut Deep
Even with a strong start to the year, AMD isn’t in the clear. The company now expects a $1.5 billion hit in 2025 from U.S. export rules that limit shipments of advanced AI chips to China. For Q2 2025, AMD expects to lose around $700 million in sales due to these restrictions.
CEO Lisa Su acknowledged the difficulties, stating it is “certainly a headwind,” but also told investors it was “well contained” thanks to strength in other parts of the business. She also emphasized the importance of the Chinese market, noting that China accounts for roughly a quarter of AMD’s total revenue.
To stay in the game, AMD is exploring new AI chips built just for China, similar to moves already made by Nvidia (NVDA) and Intel (INTC). Nvidia is working on modified versions of its flagship AI chips, like the H20, to meet U.S. export regulations, while Intel is reportedly developing lower-performance Gaudi processors specifically tailored for the Chinese market.
Su’s Vision for Enterprise Expansion
Looking ahead, CEO Lisa Su outlined AMD’s strategic focus to accelerate its AI growth. The company is expanding its range of AI chips, enhancing its “open software platform,” and strengthening ties with key tech players to drive faster adoption across industries.
Su highlighted AI as a “huge” opportunity, spanning cloud services, edge computing, and personal devices. She also pointed to rising demand for AMD’s MI300 accelerator chip, which is gaining ground and seen as a strong rival to Nvidia in high-end AI tasks.
Is AMD a Buy, Sell, or Hold?
Analysts viewed the Q1 print as solid, but not enough to ease long-term concerns tied to regulation and increasing competition from Nvidia.
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AMD stock based on 15 Buys, seven Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AMD price target of $126.40 per share implies 28.17% upside potential.
