AMD stocks jumped even though it was only $ 1.5 billion in tariffs.

Overall, chip manufacturers were strong in 1Q.

Chipmaker Luxury (NASDAQ: AMD) expects a solid Q2 in the first quarter and despite the economy and regulatory environment.

Overall, investors were satisfied with the results as AMD stocks were opened more than 4% on Wednesday.

Chipmaker and NVIDIA rivals generated $ 7.4 billion in sales, up 36% year -on -year. Because of this, the revenue estimates are $ 7.1 billion.

Net profit surged from 476%to $ 790 million, and imports increased from 529%per share to 44 cents. Net profit increased by 55% to $ 1.6 billion or 96 cents per share. It occupied 94 cents of estimates per week.

Data center revenue increased 57%

AMD is one of the main rivals of NVIDIA because it competes for the Graphics Processing Unit (GPU) chip and market share for PCs and games. However, AMD is behind NVIDIA to create AI chips for high -performance computing applications and data centers. So this is an area where you try to catch up.

In the first quarter, AMD recorded $ 3.7 billion in data center sales, an increase of 57% year -on -year. It surpassed the game sales with $ 2.9 billion, up 28% year -on -year.

Solving this, customer sales were $ 2.3 billion, an increase of 68% due to the strong demand for the latest “Zen 5” AMD Ryzen processor of the PC. Game revenue is $ 667 million, down 30%.

Lisa SU, chairman and CEO of AMD, said, “We have given excellent starts in 2025 as the growth accelerates for the fourth consecutive quarter due to the strength of the core business and the expansion of data centers and AI momentum.

Targets have a $ 1.5 billion impact on the outlook.

In the second quarter’s outlook, AMD officials expect a $ 7.4 billion sales and negative sales of $ 300 million. It will increase about 28% from Q1 in the second quarter of 2024.

But the US government’s restrictions on chip exports to China are excluded about $ 700 million. AMD is not exclusive because other chip manufacturers, including NVIDIA, are also limited. AMD affects the profits of the MI308 chip.

The adjusted total margin is estimated at 43%, including about $ 800 million in stocks and related reserves due to new export control or tariffs. Except for this claim, the adjusted margin is about 54%. A year ago, 53%of the adjusted margins were adjusted.

If you record sales of $ 700 million for tariff -related costs and are affected by $ 800 million, the import impact of $ 1.5 billion in AMD will increase.

AMD stocks have received a number of price targets after imports, except for WEDBUSH, with a goal from $ 115 to $ 120. BOFA also upgraded AMD to purchase based on its strong outlook for tariff impact. However, others, such as Jefferies, have reduced their goals in concern about the long -term effects of China’s restrictions.

Overall, AMD’s average price target is $ 130, which is about 30%of the current price. Given the tariff uncertainty and the high P/E ratio 98, I am a bit optimistic.