Superior Micro Gadgets reported first fiscal-quarter earnings on Tuesday that topped expectations, and supplied a powerful forecast for current-quarter income.
Shares of AMD have been up 4% in prolonged buying and selling earlier than receding to fall about 1% after the corporate mentioned the impact of AI chip export controls.
Here is how the chipmaker did versus LSEG expectations for the quarter that ended March 29:
- Earnings per share: 96 cents adjusted vs. 94 cents anticipated
- Income: $7.44 billion vs. $7.13 billion anticipated
For the present quarter, AMD expects about $7.4 billion in gross sales with a gross margin of 43%, versus Wall Road estimates for earnings of 86 cents adjusted on $7.25 billion in gross sales.
AMD CEO Lisa Su stated that the corporate achieved its first-quarter outcomes regardless of grappling laws on superior AI chip exports. The corporate’s forecast included $800 million in prices that the corporate stated it could incur as a result of the U.S. restricted the export of a number of the firm’s synthetic intelligence chips throughout the quarter.
AMD additionally stated that it anticipated about $700 million in misplaced income throughout the present quarter from export controls, and $1.5 billion in whole by means of AMD’s fiscal third quarter.
“Whereas we face some headwinds from the dynamic macro and regulatory environments, together with the not too long ago introduced export controls for Intuition MI308X shipments to China, we consider they’re greater than offset by the highly effective tailwinds from our management product portfolio,” Su stated on an earnings name with analysts.
The corporate reported web revenue of $709 million, or 44 cents per diluted share, versus web revenue of $123 million, or 7 cents per share, throughout the year-earlier interval. Income grew 36% on an annual foundation.
AMD is the second-place server central processing unit vendor, behind Intel, however its Epyc line of processors has been taking market share in recent times.
The corporate can be the closest competitor to Nvidia for “large GPUs,” or graphics processing models. These are the form of chips which might be deployed in information facilities by the 1000’s for constructing generative AI. It did $5 billion in AI GPU gross sales within the firm’s fiscal 2024.
Each are reported within the firm’s information middle section, which got here in at $3.7 billion in gross sales, topping a StreetAccount estimate. Information middle gross sales have been up 57% on an annual foundation, which the corporate attributed to demand for each Epyc processors and Intuition GPUs.
“I do know there are some uncertainties because it pertains to tariffs and different issues, however that is a kind of areas the place from an infrastructure standpoint, there continues to be funding,” Su stated.
Su informed traders on an earnings name that AMD’s chips are getting used to coach AI. She additionally stated a significant AI mannequin developer is utilizing AMD chips to deploy their service, a course of referred to as inference.
“The depth and breadth of our buyer engagements continues to develop as breakthroughs in large-scale AI fashions like OpenAI’s 03 and DeepSeek R1 drive elevated demand,” Su stated.
The corporate’s different main section, Consumer and Gaming, consists of chips for shopper units resembling laptops, gaming PCs and sport consoles. The general section rose 28% on an annual foundation to $2.9 billion. AMD stated gross sales for its laptop computer and PC chips, which it calls consumer income, surged 68% yr over yr due to robust demand for chips referred to as Zen 5 that the corporate launched final summer time.
Gaming gross sales, nonetheless, declined 30% on an annual foundation, which the corporate attributed to a lower in console chip income.
AMD’s embedded section, which is generally gross sales from the corporate’s 2022 acquisition of Xilinx, declined 3% on an annual foundation to $823 million.
