By Tae Kim

AMD reported better-than-expected earnings results Tuesday afternoon. It shares rose in after-hours trading.

The semiconductor company reported first-quarter adjusted earnings per share of 96 cents, compared to Wall Street's consensus estimate of 94 cents, according to FactSet. Revenue came in at $7.4 billion, above analysts' expectations for $7.1 billion.

AMD also offered a robust outlook. The company offered a sales range for the current quarter with $7.4 billion at the midpoint versus the $7.2 billion analysts' estimate.

AMD shares initially rose as much as 7% in late trading following the release.

This is breaking news. Read a preview of AMD earnings below and check back for more analysis soon.

Advanced Micro Devices investors will focus on the chip maker's guidance for future revenue when the company reports first-quarter earnings after the close Tuesday.

The consensus among analysts is for AMD to report March quarter revenue of $7.1 billion with adjusted earnings per share of 94 cents. For the current quarter, analysts estimate revenue of $7.2 billion and earnings per share of 88 cents, according to FactSet.

Last month, Bernstein analyst Stacy Rasgon reaffirmed his Market Peform rating on AMD and warned the company's outlook may not impress shareholders.

"Unfortunately for AMD the AI story, already somewhat tenuous, is likely to take another material haircut on the back of new China sanctions," he wrote.

In April, AMD disclosed in a filing it would take an up to $800 million inventory and purchase commitment charge related to tighter export control license restrictions to China. Intel, AMD's main chip rival, also gave a softer-than-expected outlook for its June quarter, citing uncertainty over tariffs.

AMD shares are down 17% this year, compared with the 12% decline for the iShares Semiconductor ETF.

Write to Tae Kim at tae.kim@barrons.com

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May 06, 2025 16:24 ET (20:24 GMT)

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