AMD Smashes Expectations but Export Controls Got Me Acting Up!

We're Rolling in the Dough... Mostly

Hey besties! Poki here your resident streamer and semi informed tech enthusiast! So AMD just dropped their Q1 earnings and spoiler alert: they kinda slayed! Earnings per share were at 96 cents which is higher than what people expected. Revenue? A whopping $7.44 billion! Basically it's like when I open a pack of Pokemon cards and pull a shiny Charizard on the first try. Pure poggers! For the current quarter AMD is expecting about $7.4 billion in sales with a gross margin of 43%. Wall Street projected earnings of 86 cents adjusted on $7.25 billion in sales. Basically we're killing it! Now that is a lot of money that I wish was in my bank account.

China Export Controls? Oh Honey Drama!

But BUT! (Dramatic music swells). There's always a catch right? AMD's CEO Lisa Su (queen!) mentioned they're grappling with regulations on AI chip exports to China. Apparently those pesky restrictions are gonna cost them around $800 million this quarter and a total of $1.5 BILLION by the end of the year! That's like losing a whole Valorant match because of lag. Totally UNACCEPTABLE! Lisa said the quiet part out loud: “While we face some headwinds from the dynamic macro and regulatory environments including the recently announced export controls for Instinct MI308X shipments to China we believe they are more than offset by the powerful tailwinds from our leadership product portfolio.” So she’s staying positive like when I try to convince myself I'm not addicted to coffee. We'll see about that.

Cha Ching! The Numbers Don't Lie

Let's get back to the good stuff because I hate being negative. AMD's net income? $709 million! That's a HUGE jump from last year's $123 million. Revenue grew 36% annually. To put it in perspective that's like going from silver to immortal in one sitting. Now that is what I call GROWTH! AMD is also giving Intel a run for their money in the server CPU game. Their Epyc processors are stealing market share left and right. And when it comes to 'big GPUs' for AI they're right on Nvidia's heels. Competition breeds innovation so let them FIGHT!

AI is the Future and AMD Wants In!

Speaking of AI AMD is making serious moves in that space. They did $5 billion in AI GPU sales in fiscal year 2024! Data center sales are booming up 57% annually. Lisa Su even revealed that their chips are being used to train AI and deploy AI services. Big names like OpenAI are using AMD chips for their AI models! It's like when I use a really good filter on my stream. AI enhancement to the MAX!

Gaming and Laptops? You Love to See It!

And let's not forget the gaming and laptop crowd! That segment is up 28% annually to $2.9 billion. Laptop and PC chip sales are soaring (up 68%!) thanks to the new Zen 5 chips. However gaming sales took a bit of a hit down 30% because of console chip revenue. But hey you win some you lose some! It's just like trying to win an argument on Twitter. You can't win them all but you have to try! Keep up the good fight!

My Final Thoughts?

So there you have it! AMD is doing pretty darn well despite those pesky export controls. It's like when I get hate comments but I just block them and keep streaming. You gotta stay focused be positive and remember that 'it is what it is'! Stay safe stay hydrated and don't forget to subscribe! Peace out Poki OUT!