Advanced Micro Devices (AMD) stock is rising over 16% in pre-market trading after the chipmaker gave Wall Street a clean beat on the areas that matter most right now: sales, AI orders, and its near-term outlook.
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Trade NVDA with leverageAMD posted Q1 sales of $10.3 billion, up 38% from last year. The key driver was its Data Center unit, where sales rose 57% to $5.8 billion. That growth came from strong demand for AMD EPYC server chips and a steady ramp in AMD Instinct GPU sales.
CEO Lisa Su framed the quarter around AI demand. “We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with Data Center now the primary driver of our revenue and earnings growth,” she said. That line is key because it shows AMD is no longer just talking about its AI chance. It is now showing that demand in its results.
Orders and Guidance Add to the Bull Case
Another reason the stock is higher is the tone around future orders. AMD said client demand for its MI450 Series and Helios AI systems is getting stronger. The firm also said leading client forecasts are now above its prior view, while its pipeline of large AI deals is giving it clearer sight into future growth.
That point matters because the market wants proof that AMD can win large AI deals against Nvidia Corporation (NVDA). In the report, AMD noted that Meta Platforms (META) plans to use up to 6 gigawatts of AMD Instinct GPUs, with the first 1 gigawatt set to use a custom MI450-based GPU. That gives AMD a strong proof point in the AI chip market.
Finally, guidance was strong. AMD expects Q2 sales of about $11.2 billion, plus or minus $300 million. At the midpoint, that would mark 46% growth from last year and 9% growth from the prior quarter. The firm also expects non-GAAP gross margin to be near 56%.
Overall, AMD is rising because the report gave investors what they wanted to see. Sales are growing fast, AI orders look strong, and the next quarter points to further growth.
Is AMD Stock a Buy, Hold, or Sell?
Turning to the Street, Advanced Micro Devices has a Moderate Buy consensus, based on 27 analysts’ ratings. The average AMD stock price target is $343.58, which implies a 3.29% downside from the current price.
