Overview
- Following Wednesday's earnings-fueled rally, AMD shares jumped about 18% after it topped Q1 estimates with $10.25 billion in revenue and $1.37 adjusted EPS and guided Q2 sales to about $11.2 billion.
- AMD said data-center revenue rose 57% to roughly $5.8 billion as EPYC server chips and Instinct accelerators sold briskly, and it forecast server-CPU revenue growth of more than 70% year over year in Q2.
- The company disclosed large customer builds that include a Meta plan to deploy 6 gigawatts of Instinct GPUs and work with OpenAI, while cloud providers expanded EPYC-based instances for AI workloads.
- Wall Street raised targets after the beat, with Goldman Sachs lifting AMD to Buy at $450 and Bernstein moving to Outperform at $525, as management said CPU demand could drive a market of over $120 billion by 2030.
- Arm reported record quarterly results but said it has secured capacity only for the first $1 billion of orders for its new AGI CPU, warning that manufacturing limits could delay deliveries even as projected demand rises to $2 billion.