AMD (AMD, Financial) shares jumped about 3% in pre‑market trading on Wednesday following a robust first‑quarter performance.

For the quarter ended March 30, the chipmaker delivered earnings of $0.96 per share on revenue of $7.44 billion, up 36% year‑on‑year and topping analyst expectations of $0.94 and $7.12 billion. Data center sales led the charge, climbing 57% to $3.7 billion, fueled by its MI300 AI accelerator and EPYC and Instinct processors.

The Client and Gaming unit saw revenue rise 28% to $2.8 billion. Within that, PC‑focused client sales surged 68% to $2.3 billion, while gaming revenue fell 30% to $647 million due to weaker semi‑custom chip orders. Embedded sales dipped 3% to $823 million.

Looking ahead, AMD forecast second‑quarter revenue of $7.1 billion to $7.7 billion, with the midpoint above the $7.24 billion consensus. Adjusted gross margin is expected near 43%, reflecting roughly $800 million in charges tied to new U.S. export controls on AI chips to China; excluding those charges, margin would be about 54%.

Is AMD Stock a Buy After Earnings?

Based on the one year price targets offered by 40 analysts, the average target price for Advanced Micro Devices Inc is $134.10 with a high estimate of $200.00 and a low estimate of $70.00. The average target implies a upside of +35.97% from the current price of $98.62.

Based on GuruFocus estimates, the estimated GF Value for Advanced Micro Devices Inc in one year is $163.53, suggesting a upside of +65.82% from the current price of $98.62. For deeper insights, visit the AMD Forecast page.