AMD Q1 Revenue Seen at $9.88B, Data Center Sales Up 52%, Helios Launch
AMD expects Q1 EPS of $1.28 on revenue of $9.88 billion, up from $0.96 and $7.43 billion, driven by data center sales of $5.6 billion (52%). It will launch the Helios AI system, with client revenue seen at $2.73 billion (19%) and gaming revenue at $668 million, offset by PC headwinds from rising memory costs.
1. First Quarter Guidance
AMD forecasts first quarter EPS of $1.28 on revenue of $9.88 billion, up from $0.96 EPS and $7.43 billion in the year-ago period.
2. Data Center Business and Helios Launch
Data center revenue is projected at $5.6 billion, a 52% year-over-year increase reflecting strong AI workload demand. The company plans to launch its Helios AI system, integrating CPUs and GPUs into a rack-scale solution for cloud and enterprise customers.
3. Client and Gaming Segments
Client revenue is expected at $2.73 billion, a 19% increase as PC demand shifts to premium configurations. Gaming revenue is forecast at $668 million, driven by new GPU launches and higher average selling prices.
4. PC Segment Headwinds
Rising memory costs and shrinking module supplies are pressuring entry-level PC margins amid an 11% projected decline in global shipments. These headwinds could weigh on the client segment and overall profitability in coming quarters.