AMD's revenue and earnings exceeded Wall Street's expectations, announcing a $6 billion stock buyback, with the stock price rising 4%.

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Advanced Micro Devices Inc, Nasdaq symbol AMD announced its Q1 earnings report, according to Benzinga Pro. AMD reported revenue of $7.44 billion, exceeding analysts' expectations of $7.13 billion, with earnings per share of 96 cents, surpassing analysts' expectations of 94 cents per share, and a total revenue year-over-year increase of 36%.

Chairman and CEO Lisa Su ( stated that AMD's core business is experiencing strong growth, coupled with the expansion of data center and artificial intelligence developments, achieving an excellent start in 2025, with AMD recording year-on-year growth for four consecutive quarters. The performance in the first quarter and the outlook for the second quarter highlight the advantages of AMD's products, laying a solid foundation for strong growth in 2025.

AMD's board of directors has approved a $6 billion stock buyback plan, which is an addition to the existing $4 billion stock buyback. Following the announcement, the stock rose by 4%.

AMD announced a potential $10 billion investment agreement on Tuesday to provide chip support for a Saudi Arabian artificial intelligence company named Humain.

Key Highlights of AMD Q1 Financial Report

Data center revenue: $3.7 billion, growth of 57%

Customer revenue: 2.3 billion USD, growth 68%

Game revenue: $647 million, down 30%

Revenue included: 823 million USD, a decrease of 3%

AMD's Q1 gross margin reached 54%, with revenue of $1.8 billion, and ending cash, cash equivalents, and restricted cash of approximately $6.06 billion.

AMD is a direct competitor of Nvidia.

AMD and Nvidia have always been direct competitors in the artificial intelligence chip industry. AMD announced that it will provide AI graphics processors and central processors needed to build AI servers to the Saudi Arabian company Humain, which is also purchasing Nvidia processors.

AMD collaborates with Humain on a super AI computing center

According to AMD's official press release, AMD and Humain will invest up to $10 billion and deploy 500 megawatts of artificial intelligence computing centers over the next five years. The super AI computing center jointly built by AMD and HUMAIN will optimize for large workloads of enterprises, startups, and sovereign AI. HUMAIN is responsible for overseeing end-to-end delivery, hyperscale data centers, sustainable power systems, and global fiber interconnects, while AMD will provide a full range of AMD AI computing products and the AMD ROCm open software ecosystem.

AMD's earnings report is impressive, and with the announcement of a planned stock buyback and collaboration with Saudi Arabia's Humain AI company, Wall Street analysts are optimistic about AMD's development. Bank of America analyst Vivek Arya raised AMD's price target by $10 to $130 per share. This is purely market observation research and not any investment advice.

This article reports that AMD's revenue and earnings exceeded Wall Street expectations, announcing a $6 billion stock buyback, with the stock price rising by 4%. It first appeared in Chain News ABMedia.

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