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.
