Can Q1 Earnings Spark a Turnaround for AMD Stock—or Trigger More Losses?
After a prolonged sell-off, Advanced Micro Devices (AMD) looks to Q1 results for a turnaround amid fading AI hype and global chip sector...
Quick overview
- Advanced Micro Devices (AMD) has experienced significant stock decline, dropping nearly 55% from its all-time high due to concerns over chip production and cooling AI momentum.
- Despite recent selling pressure, AMD's stock saw a brief rebound after the suspension of U.S. tariffs on Chinese imports, rising over 30% from its recent low.
- As AMD prepares to release its Q1 earnings, strong growth is expected in the data center and client segments, although gaming revenue is projected to decline sharply.
- Investors are keenly watching for AMD's ability to leverage its product portfolio and strategic partnerships to support a potential turnaround amid ongoing market uncertainties.
Live AMD Chart
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After a prolonged sell-off, Advanced Micro Devices (AMD) looks to Q1 results for a turnaround amid fading AI hype and global chip sector uncertainty.
A Year of Pressure for AMD
Advanced Micro Devices has faced an extended period of selling pressure, diverging from many of its big tech peers. While the broader tech sector remained largely upbeat through 2024 before dipping in early 2025, AMD began its decline much earlier, around March 2024.
From its all-time high of $227.30, the stock has plunged nearly 55%, weighed down by concerns over international chip production, cooling AI momentum, and broader technology sector skepticism. The early months of 2024 were particularly harsh, with the downward trend accelerating into April. However, optimism briefly returned following the announcement of a short-term suspension of U.S. tariffs on Chinese imports.
AMD Stock Chart Weekly – Will We See A Rebound or Return to the 200 SMA?
This move improved investor sentiment and sparked a sharp rebound in AMD shares, which surged more than 30% from the $76.48 low. This rally was technically significant, as it saw AMD bounce off its 200-week simple moving average (SMA), a level often viewed as a critical support for long-term investors.
What’s Supporting AMD Now?
As AMD prepares to release its first-quarter earnings after the U.S. market closes today, investors are keen to see if fundamentals can support further upside. The company has been leveraging its robust product portfolio, with momentum coming from its fourth-generation EPYC processors, which are increasingly being adopted in enterprise data centers.
Strategic partnerships are also playing a role. AMD’s agreement with Dell Technologies, centered around Ryzen Pro CPUs for commercial PCs, is expected to contribute positively to Q1 results. These collaborations point to AMD’s ongoing efforts to expand its footprint in high-value enterprise segments—areas that could help offset any softness in consumer-related chip demand.
Advanced Micro Devices is set to release Q1 earnings, with strong data center and client growth expected to support results despite pressure in gaming and embedded segments.
Key Expectations for AMD’s Q1 Earnings:
- AMD is projected to report earnings of $0.93 per share, marking a 50% increase from the same quarter last year.
- Revenue is expected at $7.12 billion, up 30.1% year over year, reflecting strong demand across select chip segments.
- Despite the solid topline projection, analysts have revised EPS estimates down by 2.7% over the past month, suggesting rising caution or margin concerns.
- The Client segment is forecast to generate between $2.04 billion and $2.07 billion, implying ~50–51% YoY growth, supported by recovering PC demand and product refresh cycles.
- The Data Center segment remains the primary growth engine, with revenue estimates ranging from $3.4 billion to $3.68 billion, suggesting ~47–57% growth, thanks to robust AI and server chip sales.
- The Embedded segment is expected to come in at $827 million, representing a modest 2.2% YoY decline, possibly due to cyclical softening in industrial and networking demand.
- Gaming revenue is anticipated to fall sharply to $519 million, a 43.7% decrease from a year ago, reflecting continued weakness in GPU sales.
Conclusion:
With its share price attempting a rebound from multi-month lows, AMD’s Q1 earnings will be closely watched for confirmation of a broader recovery. Investors will look for strong performance in data centers and commercial segments to counterbalance market fears stemming from weakened AI sentiment and geopolitical uncertainty. If the company can deliver robust growth in key sectors, it may mark the beginning of a sustainable turnaround for one of the chip industry’s biggest names.
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