AMD's Trading Volume Drops 42% to 13th Place Despite Strong Q1 Earnings

On May 9, 2025, Advanced Micro Devices, Inc. (AMD) experienced a significant decline in trading volume, with a total turnover of $32.43 billion, marking a 42.08% decrease from the previous day. This decline placed AMD's trading volume at the 13th position among all stocks traded that day.

AMD's first-quarter 2025 financial results showcased a robust performance, driven by strong demand for AI and data center chips. The company reported a 36% year-over-year increase in revenue, reaching $7.44 billion, which surpassed analyst expectations of $7.13 billion. This growth was primarily fueled by the Data Centre segment, which saw a 57% increase in revenue to $3.7 billion, driven by the deployment of Epyc server CPUs and Instinct GPUs for AI applications.

The Client segment, which includes laptop and desktop processors, also performed well, generating $2.3 billion in revenue, a 68% annual growth rate. However, the Gaming segment faced a 30% year-over-year decline to $647 million, attributed to weaker sales in the second half of console life cycles and tariff pressures. The Embedded segment, which includes revenue from the 2022 Xilinx acquisition, recorded $823 million, down 3% year over year, reflecting broader demand moderation in industrial and telecom markets.

Despite these strong results, AMD faces significant regulatory headwinds due to new U.S. export restrictions on AI chips bound for China. The company expects a $1.5 billion reduction in revenue for fiscal 2025, nearly 5% of Wall Street’s projected full-year revenue of $31 billion. This includes an $800 million Q1 charge related to inventory reserves and purchase commitments and anticipates $700 million in lost sales in Q2 due to the new rules, which affect shipments of AMD’s Instinct MI308X AI processors.

AMD provided strong guidance for Q2 2025, forecasting revenue of $7.4 billion, plus or minus $300 million, which is above the consensus estimate of $7.25 billion. Gross margin guidance stands at 43%, impacted by the aforementioned export-related charges. Dr. Lisa Su, AMD's CEO, expressed confidence that, despite export restrictions, the company expects AI-related revenue to grow at a strong double-digit rate in 2025, supported by high demand from enterprise and hyperscaler customers including Microsoft and Meta.