What's Going On With Advanced Micro Devices Stock Wednesday?

Advanced Micro Devices, Inc. AMD shares are trading higher Wednesday after the company reported better-than-expected first-quarter financial results on Monday after the market closed.

What To Know: The company reported adjusted earnings per share of 96 cents, beating the consensus estimate of 94 cents. In addition, AMD reported sales of $7.44 billion, beating the consensus estimate of $7.13 billion and representing a 36% year-over-year growth.

The company provided a segment breakdown, reporting $3.7 billion in Data Center revenue, $2.9 billion from its Client and Gaming segment and $823 million from its Embedded segment. Data Center revenue rose 57% year-over-year, while Client and Gaming revenue climbed 68%.

“We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum,” said Dr. Lisa Su, AMD chair and CEO.

“Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution positioning us well for strong growth in 2025.”

Outlook: The company sees second-quarter sales from $7.10 billion to $7.70 billion, versus the consensus estimate of $7.24 billion.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Raymond James analyst Srini Pajjuri reiterated an Outperform rating on AMD and lowered the price target from $150 to $120.
• UBS analyst Timothy Arcuri maintained a Buy rating on AMD and lowered the price target from $155 to $150.
• Piper Sandler analyst Harsh Kumar reiterated an Overweight rating on AMD and lowered the price target from $140 to $125.
• Loop Capital analyst Gary Mobley maintained a Buy rating on AMD and lowered the price target from $175 to $140.

See Also: Celanese Analysts Boost Their Forecasts After Upbeat Q1 Results

AMD Price Action: At the time of writing, AMD stock is trading 0.65% higher at $99.22, according to data from Benzinga Pro.

Image: Courtesy of Advanced Micro Devices, Inc.