AMD: Get Ready For Another Double-Beat As AI Demand Soars (Earnings Preview)

Summary

  • AMD heads into Q2 FY2025 earnings with strong momentum, driven by robust AI and data center demand and a history of consistent double-beats.
  • Q1 results saw revenue up 36% and EPS up 55% YoY, with data center sales surging 57% and gross margin reaching 54%.
  • The company's AI partnerships, new product launches, and ZT Systems acquisition position AMD to capture a larger share of the $500B+ AI compute market.
  • Despite export license headwinds, AMD’s guidance remains bullish, and consensus estimates appear conservative, setting the stage for another potential upside surprise.
  • Risks include competitive pressure from Nvidia and high valuation, but margin expansion and DC growth support a 34% upside, justifying a continued "buy" rating.
  • I do much more than just articles at Beyond the Wall Investing: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

AMD Ryzen 9 AM5 on top of a maze of orange energy board circuits, orthographic view, 3D rendering

Javier Lizarazo Guerra

Intro & Thesis

My first article on Advanced Micro Devices (NASDAQ:AMD) was published here on Seeking Alpha in late August 2023 with a "sell" rating. I thought that AMD was supposed to

Hold On! Can't find the equity research you've been looking for?

Now you can get access to the latest and highest-quality analysis of recent Wall Street buying and selling ideas with just one subscription to Beyond the Wall Investing! There is a free trial and a special discount of 10% for you. Join us today!

This article was written by

13.19K Followers
Daniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About AMD Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on AMD

Related Stocks

SymbolLast Price% Chg
AMD
--
AMD:CA
--