Will AMD Stock Climb on Strong Data Center Revenues in Q1 Earnings?

Advanced Micro Devices AMD is expected to have benefited from strong Data Center revenues in the first quarter of 2025. The company’s first-quarter results are expected to be released on May 6.AMD benefits from a robust product portfolio and expanding partner base. The company continues to strengthen its footprint in the enterprise data center arena by leveraging the power of fourth-generation EPYC CPUs.AMD’s expanding portfolio, which includes Instinct MI300X Series data center AI accelerators and the Versal RF Series Adaptive SoCs, has been noteworthy. Partners like Dell Technologies, HPE, Lenovo and Supermicro all have the Instinct platforms in production.The Zacks Consensus Estimate for first-quarter Data Center revenues is pegged at $3.4 billion, indicating an impressive year-over-year surge of 47.5%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).Advanced Micro Devices, Inc. Price and EPS Surprise Advanced Micro Devices, Inc. price-eps-surprise | Advanced Micro Devices, Inc. QuoteClick here to know how AMD’s overall first-quarter performance is likely to be.Expanding Portfolio to Aid AMD’s Client Revenues in Q1AMD’s expanding portfolio and rich partner base have been key catalysts in driving client segment revenues.The company is likely to see continued growth in its client business, driven by higher demand for AMD Ryzen processors across desktop and mobile platforms.Moreover, AMD’s collaborations, such as the one with Dell Technologies for Ryzen Pro processors in commercial PCs, are expected to have bolstered growth in this segment in the to-be-reported quarter.The Zacks Consensus Estimate for first-quarter Client segment revenues is pegged at $2.04 billion, indicating year-over-year growth of 49.34%.AMD’s Gaming & Embedded Segments to Decline Y/YAMD’s Gaming segment is expected to have declined in the first quarter of 2025. Semi-custom sales are expected to fall as major partners continue to reduce channel inventory. This is expected to have reduced revenues on a year-over-year basis.The consensus mark for Gaming revenues is pegged at $570 million, suggesting a massive 38.1% decline.AMD’s Embedded segment is expected to have suffered from ongoing softness in the industrial and communication markets. The Zacks Consensus Estimate for first-quarter Embedded revenues is pegged at $838 million, indicating a 0.9% year-over-year decline.What Our Model SaysPer the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.Advanced Micro Devices currently has an Earnings ESP of +0.74% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Stocks to ConsiderHere are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:Affirm AFRM has an Earnings ESP of +63.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Affirm shares have lost 14.1% in the year-to-date period. Affirm is set to report its third-quarter fiscal 2025 results on May 8.StoneCo STNE has an Earnings ESP of +6.25% and a Zacks Rank of 1 at present.StoneCo shares have surged 72.8% in the year-to-date period. STNE is set to report its first-quarter 2025 results on May. 8.Baidu BIDU has an Earnings ESP of +8.67% and a Zacks Rank of 2 at present.Baidu shares have gained 6.7% in the year-to-date period. BIDU is set to report its first-quarter 2025 results on May 21.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Baidu, Inc. (BIDU): Free Stock Analysis Report StoneCo Ltd. (STNE): Free Stock Analysis Report Affirm Holdings, Inc. (AFRM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks