Advanced Micro Devices Stock Sinks as PC Chip Sales Slump

Advanced Micro Devices stock is trading lower Wednesday after the chipmaker's Q1 earnings, but most analysts are still bullish on the name.

Advanced Micro Devices sign posted in front of the chipmaker's California headquarters
(Image credit: Justin Sullivan/Getty Images)

Advanced Micro Devices (AMD, $82.43) stock sold off sharply Wednesday in response to the chipmaker's first-quarter earnings report, which it disclosed after the previous session's closing bell. AMD said adjusted Q1 earnings were down 47% year-over-year to 60 cents per share, while revenue declined 9% to $5.35 billion. Gross margin declined 3 percentage points over the three-month period to 50%, and operating expenses climbed 18%. 

AMD's gaming division (32.8%) was the largest contributor to first-quarter revenue, followed by its data center segment (24.2%). The largest year-over-year increase in revenue came from the company's embedded section (+163%), which makes central processing units (CPUs) for high-performance computing systems, automakers and cloud services companies. Meanwhile, its client division, which makes processing units for desktop and notebook personal computers, suffered the biggest year-over-year decline in revenue, down 65.2% over Q1 2022.

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Karee Venema
Senior Investing Editor,

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.