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NEWS
Sell In May, Or Will Bessent Take The Tariffs Away

The market fell for a second day. Talking about tariffs continued, while actual tariff talks are just starting. AMD's earnings were good, but they warned that policy would hurt their margins in the coming quarters. The Treasury Department announced right after 6 PM that Secretary Scott Bessent would head to Switcherland this week to meet with representatives from the People’s Republic of China. 👀

Today's issue covers AMD beats with strong datacenters, the good bad and ugly tariff talks, and what the FOMC dot plot looks like. 📰

Here’s the S&P 500 heatmap. 2 of 11 sectors closed green, with utilities (1.22%) leading and health care (-2.76%) lagging.

And here are the closing prices: 

STOCKS
AMD Beats, Says Gamers Are Not Buying Custom Cards  

AMD reported Q1 EPS Adj. $0.96 on revenue of $7.438B. Analysts expected earnings of  $0.94/share on revenue of $7.12B, according to Benzinga.

“We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter, driven by strength in our core businesses and expanding data center and AI momentum,” Dr. Lisa Su, AMD chair and CEO said in the firm’s release.

For Q2 2025, AMD anticipates revenue between $7.1 billion and $7.7 billion. The firm projects its non-GAAP gross margin at 43%, which includes roughly $800 million in inventory-related charges due to new export controls, as disclosed in AMD’s Current Report on Form 8-K filed on April 16, 2025. Without this charge, the non-GAAP gross margin would be about 54%.

“Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution, positioning us well for strong growth in 2025,” Su said.

AMD boasted strong Q1 growth across its segments. Data center revenue reached $3.7 billion, up 57% year-over-year, driven by high demand for AMD EPYC CPUs and Instinct GPUs, the firm said.

The firm’s client and gaming revenue totaled $2.9 billion, rising 28% year-over-year. Client revenue surged 68%, fueled by Zen 5 Ryzen processors, while gaming revenue actually fell 30% due to lower custom sales. Embedded revenue came in at $823 million, down 3%, reflecting mixed demand across key markets.

SMCI also posted results, showing a miss in both adjusted EPS and sales revenue vs. FactSet expectations. For the current quarter, the data shelf maker said it would expect net sales between $5.6 and $6.4B, while Wall Street wanted a $6.81B on average.

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_{1. The underlying companies held by StartEngine Private Funds LLC, and StartEngine Private LLC (together, “StartEngine Private”) are not participating or involved in the offering. The availability of company information does not indicate that the company has endorsed, supports or otherwise participates with StartEngine Private or any of its affiliates. StartEngine Crowdfunding LLC purchases shares from current and former employees, early investors, and advisors of the companies and sells the shares to StartEngine Private for each offering. When you make an investment in a company on StartEngine Private, you are purchasing an interest in a series of StartEngine Private Funds LLC or StartEngine Private LLC, each a Delaware limited liability company (together the “Series LLCs”), which were created to hold shares of privately held companies. An investor will not directly own or hold shares of the private company but instead will own member interests in a series of the Series LLCs, which either directly or indirectly, will hold shares in the company. There may not be a one-to-one economic parity on the value of the Series LLCs interests and the underlying shares.  This is offered only to accredited investors per regulation D rules.}

_{2. StartEngine receives a small percentage of equity in fees from many of our crowdfunding offerings, and 20% carried interest in some of our Private pre-IPO offerings. Fees are subject to change. There is no guarantee that the 20% carried interest or equity received as compensation will have value, that they will generate income for StartEngine, or that StartEngine will be profitable. To understand the impact on margins, see financials.}

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