AMD's Quantum Leap: Defying Export Controls with a License to Thrill

Shaken Not Stirred: Earnings Exceed Expectations

Well hello there Moneypenny. Seems AMD much like myself in a high stakes poker game has played its cards right. Their first fiscal quarter earnings have landed and they've not only met expectations but have given them a rather forceful 'good evening'. 96 cents per share adjusted darling against an expected 94. Revenue? A cool $7.44 billion surpassing the $7.13 billion forecast. Looks like someone's been busy and not just with the ladies. Though I suspect CEO Lisa Su has a few admirers herself. After all who doesn't love a woman who can outwit the best of them?

License to Bill: Forecasting a Robust Revenue Stream

The current quarter looks equally promising. AMD anticipates sales of around $7.4 billion with a gross margin of 43%. Wall Street was expecting a paltry 86 cents on $7.25 billion. As I always say 'Never say never again' – especially when it comes to exceeding expectations. AMD is clearly not one to rest on its laurels. Though a brief respite on a sun drenched beach with a beautiful woman wouldn’t go amiss.

The World Is Not Enough...AI Chips Under Scrutiny

Ah but here's where things get a bit... thorny. Like a rose held by a beautiful spy. Lisa Su mentioned grappling with regulations on advanced AI chip exports. It seems the Americans are being rather particular about who gets their hands on these powerful toys like MI6 keeping their best gadgets away from the common riff raff. Apparently these export controls could cost AMD $700 million this quarter and $1.5 billion for the fiscal year. A significant sum even for someone accustomed to extravagant casino nights.

Die Another Day: Rising Above Adversity

But never fear! Ms. Su ever the optimist assures us that these headwinds are more than offset by the 'powerful tailwinds' from their product portfolio. It's like Q always says "I never joke about my work 007." While export controls might sting like a shaken martini AMD is still reporting a net income of $709 million a significant jump from last year. Revenue also grew 36% annually. Quite the achievement wouldn't you agree? Even Goldfinger would be impressed.

GoldenEye: Dominating the Data Center Arena

AMD is giving Intel a run for its money in the server CPU market thanks to their Epyc processors. They're also nipping at Nvidia's heels in the 'big GPU' race. These are the chips powering the AI revolution darling the same ones being deployed in data centers. And it did $5 billion in AI GPU sales in fiscal 2024. Their data center segment alone brought in $3.7 billion surpassing expectations. An increase of 57% year on year driven by both Epyc processors and Instinct GPUs. Looks like someone's been spending my money wisely.

Tomorrow Never Dies: Innovation and Future Growth

Meanwhile in the consumer world sales for laptops and PC chips surged 68% due to strong demand for Zen 5 chips. Gaming sales took a slight dip but all in all AMD is proving that they are not only adapting but thriving. As I always say “The name’s Bond James Bond.” And AMD it seems is here to stay. Now if you'll excuse me I have a villain to thwart and a martini to enjoy. Shaken not stirred of course.