AMD Q1 FY12/25 Earnings Review

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It’s Almost As If We Aren’t Doomed

If you spend any time reading or thinking about the macro picture it’s easy to think the market must be heading down sometime soon. For good measure, this week India commenced bombing Pakistan. Probably Pakistan will retaliate. Both are nuclear powers. The news just keeps getting worse.

But if you look at the financial fundamentals and guidance getting printed by the top US companies, the gloom is hard to discern. We’ve seen this throughout earnings season so far, and AMD is no exception.

Let’s take a look.

Growth accelerated and margins rose. Net cash was a little lower than last quarter but nothing at a level to worry about. It’s certainly possible that some of the acceleration in AMD growth is due to pull-forward orders; many participants in the semiconductor supply chain are scrambling to get ahead of any possible future tariffs. But growth has been accelerating for each of the last four quarters, so perhaps this is just a continuation of the trend. (You could say the same for margins. Pull-forward orders are likely to be at premium prices, which will push up margins - but the margin trend has been up for four quarters now anyway).

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