AMD just dropped earnings and did what Intel hasn’t been able to do in a decade—look like it actually knows what the hell it's doing. They beat on the top and bottom line, boasted a 57% YoY spike in data center sales, and somehow managed to do it all while Uncle Sam was busy cockblocking $1.5 billion of their revenue with new chip export restrictions to China. *Mic Drop* 

(Source: Giphy) 

In short, AMD’s Q1 earnings came in like a heat-seeking missile: $0.96 EPS vs. $0.94 expected, $7.44 billion in revenue vs. $7.13 billion consensus. Call it a beat. Call it a win. I call it a backhand to every hedge fund shorting AMD on the assumption that Lisa Su forgot how to run a company. Spoiler: she didn’t. 

In fact, the cherry on top of this call was that AMD guided higher for Q2. $7.1B to $7.7B in revenue with a gross margin of 43%. Wall Street had them at $7.25B. So yeah, AMD just dragged its fat stacks across the analyst community’s face on live TV. Again. Keep in mind, this is all while the U.S. Government gave a sledge hammer to the chip industry last month regarding business with China. More specifically, the MI308X—AMD’s big swingin’ Instinct GPU that’s supposed to compete with Nvidia’s H100 in hyperscale data centers and AI orgies. 

(Source: CNBC) 

This regulatory middle finger will cost AMD $800 million this quarter and $700 million in Q2. Total estimated hit for the year? $1.5 billion—gone, courtesy of the Commerce Department’s “Screw China” energy. But, but, but… AMD didn’t flinch. Lisa Su basically shrugged on the earnings call and said, “Yeah, the regs suck, but our product portfolio is still built different.” And she’s not wrong. AMD’s data center unit, home of the Epyc CPUs and Instinct GPUs, did $3.7 billion last quarter. That’s a 57% jump year-over-year. Nvidia’s still the daddy when it comes to AI, but AMD’s crawling up the wall with a chip on its shoulder like it has something to prove. 

Oh, and AMD’s Client & Gaming segment did $2.9B, up 28% overall. Client revenue (think: laptops and PCs) surged 68% thanks to Zen 5 chip demand, which proves there’s still life in the PC market if you’re not shipping hot garbage. Gaming revenue, however, was down 30% because nobody’s buying new consoles when their PS5 still looks like a Wi-Fi router and runs just fine. 

(Source: Yahoo Finance) 

In the end though, this was a great win for AMD. They’re rising into a post-export-control world where chips are the new oil, and every country is trying to hoard their own supply. They got clipped by U.S. policy, took the hit on the chin, and still managed to beat earnings and raise guidance (Hell, in this market, who can ask for any better than that?). 

Naturally, the stock popped 5% after hours before traders remembered we live in a zero-attention-span market and sold it down to flat. But still, AMD’s not just surviving, they’re building. And in a world where Nvidia has an aura that mimics the second coming of Christ, AMD’s the only other silicon name that isn’t just selling picks and shovels to the AI gold rush–-it’s actually stealing market share while doing it. 

Live look at AMD right now…

(Source: Giphy) 

Meaning, if you’re still sleeping on AMD because of China or Nvidia, don’t. Obviously, do what you will with this information, but this latest earnings proves they are a force to be reckoned with. For now, keep your eyes on AMD’s price action through the day and place your bets accordingly. Until next time, friends… 

P.S. Oh, I’m sorry, I didn’t know you liked getting rekt. Let’s face it, retail investors get the short end of the stick all day everyday. It’s the smart money’s world, and we are just living in it–only useful when it comes to liquidity purposes in the market. Meaning, if you’re as pissed off as I was when I found out Milli Vanilli was lip syncing the whole time, then it’s time to go from investing blind, to investing smart. Luckily for you, the key is right here as a Stocks.News premium member. Click here to see exactly how our premium members are printing while others quake in the face of today’s market chaos. 

Stocks.News holds positions in Intel as mentioned in the article.