Advanced Micro Devices (AMD) reported a 67.7% year-over-year increase in Client revenue, reaching $2.294 billion in Q1 2025, representing 30.8% of total revenues. Demand for their latest Ryzen CPUs, particularly the Ryzen 9 9950 X3D based on Zen 5 architecture, has driven this growth. The company has experienced over a 30% rise in Ryzen Pro PC sell-through, supported by an 80% increase in AMD-powered commercial systems from major OEMs like HP and Dell.
Despite this growth, AMD faces stiff competition from Intel and Qualcomm, with Intel remaining the primary competitor in CPUs. Qualcomm’s Snapdragon chipsets are growing in the PC market, intensifying competition further. AMD’s stock has gained 5% year-to-date, outperforming the broader technology sector’s 1.5% return, but still carries a forward Price/Sales ratio of 6.01X compared to the industry’s 3.69X.
The Zacks Consensus Estimate for AMD’s second-quarter 2025 earnings is 54 cents per share, reflecting a decline of 16.9% over the past month and a 21.74% year-over-year decrease. For the full year, the estimated earnings are expected to reach $3.92 per share, suggesting an 18.43% year-over-year growth.
