AMD Stock News Chipmaker Smashes Q1 Sales Earnings Estimates
AMD absolutely crushed their Q1 earnings and if youre invested in the semiconductor space you should be paying attention. The numbers are genuinely impressive across basically every metric.
Revenue came in at $3.45 billion which is up 93% year-over-year. Let me say that again. Ninety-three percent growth. In a quarter. For a major chipmaker. Thats not normal. Thats exceptional.
The story here is AMD eating Intels lunch in the datacenter and taking share in gaming and consumer PCs. Their Ryzen processors have become the choice for enthusiasts who used to default to Intel. Their EPYC server chips are winning contracts that Intel assumed were locked in.
CEO Lisa Su – who has frankly done a remarkable job turning this company around – raised guidance for the full year. They now expect 50% revenue growth for all of 2021. Wall Street had been expecting less. The stock moved on the news.
Some context: AMD was nearly dead a decade ago. They were losing to Intel everywhere bleeding money burning through cash. Bringing in Su and pivoting to a fabless model saved the company. Now theyre thriving while Intel stumbles.
The chip shortage is a double-edged sword here. On one hand demand is through the roof. On the other hand AMDs manufacturing partner TSMC is capacity constrained. They could sell more chips if they could make more chips. Thats a nice problem to have but still a problem.
The Xilinx acquisition is still pending which would expand AMD into FPGAs and give them more datacenter capabilities. If that closes as expected the company gets even stronger.
Is the stock a buy at these levels? Thats always the hard question. Valuation is rich. But growth is real. For long-term investors in the semiconductor thesis AMD makes a compelling case. Just dont expect quick doubles – the easy gains have already happened.
