Chipmaker Beats Forecasts with Strong AI Demand

Advanced Micro Devices (AMD) shares edged higher in early US trading as the semiconductor firm outperformed market expectations in its latest quarterly update and issued a confident revenue forecast for the months ahead.

For the first fiscal quarter of 2025, AMD reported adjusted earnings per share of $0.96 and revenue totalling $7.4 billion, comfortably ahead of analyst expectations, which were pegged at $0.94 EPS and $7.1 billion in revenue (source: Bloomberg). By comparison, the same quarter last year saw AMD deliver $0.62 EPS and $5.4 billion in turnover.

Looking ahead, AMD projected Q2 revenue in the range of $7.1 billion to $7.7 billion (£5.3bn to £5.8bn)—again slightly above analyst consensus of $7.2 billion.

CEO Dr Lisa Su acknowledged ongoing challenges, including export restrictions on high-performance AI chips, but emphasised the strength of AMD’s diversified technology offering. The company noted around $800 million in costs related to US-imposed limits on AI chip exports during the quarter.

“In a complex global and regulatory climate, our robust product range and strong execution leave us well positioned for meaningful growth in 2025,” Su said in a statement.

Strong Data Centre Performance Boosts AI Credentials

AMD’s data centre division—which includes its AI-focused GPU and CPU product lines—recorded a 57% year-on-year increase, exceeding market estimates and underscoring its growing presence in the artificial intelligence space.

Despite still trailing Nvidia (NVDA) in the GPU market, AMD is increasingly viewed as a viable alternative for large clients, according to Ben Barringer, global tech analyst at Quilter Cheviot.

“While Nvidia leads the pack, AMD remains a credible second source. The company’s innovation pipeline for 2025 and 2026 is built on advanced chip manufacturing processes, helping broaden its market share.”

However, Barringer cautioned that US-China trade tensions could continue to impact AMD’s long-term revenue outlook. Nevertheless, the company’s forward guidance for double-digit revenue growth and its Q2 outlook, roughly 3% above Wall Street expectations, was widely interpreted as a vote of confidence.

Novo Nordisk Lowers 2025 Sales Forecast Despite Q1 Growth

Shares in Novo Nordisk (NVO) rose by 5% in early European trading, despite the pharmaceutical giant trimming its full-year sales forecast after a dip in sales of its flagship obesity drug, Wegovy.

First-quarter Wegovy sales reached 17.36bn DKK (£1.97bn/$2.64bn), down 13% from the previous quarter. However, group revenue still grew 18%, with operating profit up 20%, buoyed by continued demand for GLP-1 treatments.

CEO Lars Fruergaard Jørgensen noted that despite strong international demand, expanding competition and compounded alternatives in the US have impacted market penetration.

Rivian Slashes EV Delivery Target Amid Ongoing Tariff Challenges

Electric vehicle maker Rivian (RIVN) issued a more cautious outlook for 2025, forecasting 40,000 to 46,000 vehicle deliveries, down from a previous 46,000 to 51,000 range.

Revenue came in at $1.24 billion, ahead of estimates and slightly above the $1.204 billion posted last year. Losses narrowed significantly, with adjusted EPS at -$0.41 and EBITDA loss of $329 million, beating expectations.

CEO RJ Scaringe highlighted growing momentum for the company’s next-generation R2 platform, with vehicle validation builds already underway and expansion progressing at its Illinois facility.

Super Micro Sees Shares Drop After Trimming Annual Sales Forecast

Shares in Super Micro Computer (SMCI) declined over 5% in pre-market trading after the server hardware specialist reduced its fiscal 2025 sales expectations.

While quarterly revenue rose 19% year-on-year, net income slipped to $0.17 per share, down from $0.66 in the prior year.

The firm now expects $21.8bn to $22.6bn in annual sales, down from an earlier $23.5bn to $25bn estimate. CEO Charles Liang blamed uncertainty surrounding US tariffs and AI product transitions for the downgrade, with clients delaying orders as they await Nvidia’s upcoming Blackwell GPU series.

Trainline Enjoys Record Profits Amid Rising Digital Ticket Use

UK-based rail and coach ticketing platform Trainline (TRN.L) reported a bumper £86 million in operating profit, up 56% year-on-year, thanks to strong digital ticket sales and reduced strike action.

Revenue climbed to £5.9 billion, driven by rapid growth across the UK and expansion in European markets. The company benefited from increased consumer preference for digital ticketing and cited fewer disruptions from rail strikes compared to 2023.

However, looming competition from state-owned Great British Railways may present headwinds in the years to come.

Final Thoughts

As we move through 2025, it’s clear that major tech and pharmaceutical firms are adapting swiftly to global pressures, while sectors like EVs and travel continue to feel the pinch of tariffs and competition. For investors, these market shifts can create both opportunities and risks.

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