Advanced Micro Devices (NASDAQ:AMD) delivered a solid start to FY25, beating Q1 expectations on both revenue and EPS. Growth was driven by the Data Center and the newly combined Client and Gaming segment, which showed strong momentum. Embedded continues to lag, but management reiterated expectations for a recovery in the second half of FY25, citing encouraging signs of customer engagement.
However, a closer look reveals some cautionary flags. While year-over-year comparisons were favorable, sequential performance was weaker, a sign that recent gains may not be as robust as they appear. Additionally, strength in Client and Gaming may have been partially inflated by customers front-loading purchases ahead of potential tariff-related disruptions. Management also disclosed a projected $1.5 billion impact to revenue from the recently announced China export restrictions—$700 million of which will affect Q2, with the rest expected in Q3. Despite this, they maintained full-year double-digit revenue growth guidance, though without offering specific figures, raising some uncertainty about how achievable those targets are under current conditions.
For more details, key highlights, and commentary, check out the high-level earnings summary.
