AMD Shares Soar 17% After Q1 Beat and $11.2B Q2 Revenue Guidance
AMD•Advanced Micro Devices reported Q1 revenue of $10.25 billion, topping estimates by $360 million, with data center sales up 57% year-over-year and premarket shares rallying 17%. CEO Lisa Su cited a Meta partnership starting H2 and projected Q2 revenue at about $11.2 billion, prompting Bernstein to raise its price target to $525.
1. Q1 Earnings Beat
Advanced Micro Devices posted Q1 revenue of $10.25 billion, exceeding consensus by roughly $360 million, while data center sales surged 57% year-over-year. Premarket trading saw shares jump about 17% following the stronger-than-expected quarterly results and elevated investor interest.
2. Q2 Guidance and Data Center Growth
Management projected Q2 revenue midpoint near $11.2 billion, above the $10.52 billion consensus, driven by continued demand for Instinct accelerators and EPYC processors. CEO Lisa Su highlighted server revenue growth exceeding 70% year-over-year and flagged a Meta partnership with shipments slated to begin in the second half.
3. Analyst Upgrades and Partnership Outlook
Wall Street analysts responded with upgrades and higher targets, including a Bernstein Outperform rating and a $525 price objective. The $60 billion chip supply agreement with Meta and robust AI market positioning underpin the bullish outlook, reinforcing confidence in AMD’s long-term growth trajectory.
