Advanced Micro Devices Raises Q2 Revenue Forecast to $11.2B, Sees 56% Gross Margin
AMD•Advanced Micro Devices forecast second-quarter revenue of $11.2 billion, surpassing analyst estimates of $10.52 billion and projecting a 56% adjusted gross margin. In the first quarter, net sales reached $10.25 billion and adjusted EPS was $1.37, led by a 57% surge in data center revenue to $5.8 billion.
1. Q2 Revenue Forecast
Advanced Micro Devices projects second-quarter revenue of $11.2 billion, exceeding consensus of $10.52 billion, and expects an adjusted gross margin near 56%.
2. Q1 Financial Results
In the first quarter, AMD reported net sales of $10.25 billion and adjusted EPS of $1.37, topping forecasts of $9.89 billion and $1.29 respectively.
3. Data Center Sales Surge
The data center division led growth with revenue rising 57% year-over-year to $5.8 billion, driven by escalating demand for AI processors among major cloud providers.
4. Competitive Landscape and Risks
Despite strong AI demand, AMD faces intense competition from Intel and Nvidia and could see margin pressure if rising memory costs dampen PC and gaming sales.
