Revenue beats expectations, data‑center struggles cloud the picture, but new AI
chips give investors something to hang their hats on
In Q2 2025, AMD
posted revenue of roughly $7.685 billion,
up 32 % year over year and ahead of Wall Street’s $7.42 billion consensus. Net
income reached $872m, or $0.54 per share.
Despite the
topline win, profitability took a hit. Adjusted gross margin was 43 %, far
short of the 54 % it could’ve been absent the $800 m charge tied to U.S. export
restrictions on MI308 GPUs destined for China, according to AMD.
$AMD AMD Q2 FY25:
• Revenue +32% Y/Y to $7.7B ($0.3B beat).
• Operating margin -2% (-6pp Y/Y).
• Non-GAAP EPS $0.48 (in-line).
• Q3 revenue +28% Y/Y to $8.7B ($0.4B beat).Dr. Lisa Su: “We are seeing robust demand across our computing and AI product portfolio and are well… pic.twitter.com/e1q3fSM2sv
— App Economy Insights (@EconomyApp) August 5, 2025
Lisa Su, AMD CEO (AMD).
“We delivered strong revenue growth
in the second quarter led by record server and PC processor sales,” said Dr.
Lisa Su, AMD Chair and CEO. “We are seeing robust demand across our
computing and AI product portfolio and are well positioned to deliver
significant growth in the second half of the year, driven by the ramp of our
AMD Instinct MI350 series accelerators and ongoing EPYC and Ryzen processor
share gains.”
Data‑Center
Disappointment Despite AI Hype
AMD’s data‑center
segment generated $3.2 b, a 14 % increase year over year, but that growth was
viewed as underwhelming in context. Investors expected more, especially given artificial
intelligence (AI) ramp expectations. Shares slipped around 5% after hours, perhaps
pointing to disappointment that the company could not better compete with
Nvidia.
Incredible Q2 growth – amazing results – proud to be a part of this remarkable journey! Well done team @AMD pic.twitter.com/RWaiZGfcVo
— Saša Marinković (@SasaMarinkovic) August 5, 2025
The MI308 export
block to China is a major factor here. AMD estimates licensing issues could
cost it up to $1.5 b in sales this year, casting a long shadow over AI‑powered
data‑center growth. However, in July the company announced that the U.S.
Commerce Department had given indications that the export license review had
been restarted and sales could potentially go ahead in the future.
PC
and Gaming Keep Things Rolling
Meanwhile, AMD’s
client and gaming segments delivered stellar performance. Client revenue jumped
57 % to $2.5 b off “Zen 5” Ryzen desktop CPU demand. Gaming revenue surged 73 %
to $1.1 b, thanks to Radeon GPU strength and semi‑custom wins. These gains
helped buffer the damage done in margins and data‑center softness.
AI
Ramp and Q3 Guidance Shine Through
Even with its AI
data revenue underperforming, AMD is leaning hard on optimism around its
upcoming MI350 series accelerators. The company says demand is strong, and it
expects those chips to power data center expansion in H2.
For Q3, AMD is
guiding revenue of about $8.7 b,
plus or minus $0.3 b, which is above expectations.
Cynical
Perspective: Why the Hype vs Reality Gap?
On paper AMD
delivered. But investor reaction says it wasn’t enough. Profit margins were slashed,
AI data‑center growth met but did not impress, and looming U.S. export controls
still hang over near‑term upside. So even though EPS didn’t crater, growth
expectations are showing cracks.
At AMD #AdvancingAI 2025, we shared many exciting updates on our end-to-end Al solutions, products, and ecosystem, and our vision for the future of AI.
Here are some highlights 👇 pic.twitter.com/hPxZfODZ0k
— AMD (@AMD) June 12, 2025
Still, AMD is
doubling down on AI, with new chips, a server push through the
ZT Systems acquisition and partnerships touted at its Advancing AI
2025 event. That kind of positioning appeals to the growth-seeking, risk‑tolerant
crowd.
What
to Watch Going Forward
- MI308
licensing resolution.
If U.S. approvals come through, that $800 m drag can reverse and margins
could rebound. - MI350
traction.
Execution on AI chip roll‑out will make or break AMD’s next act. - Nvidia
competition.
AMD needs to compete with Nvidia in efficiency and/or price to capture AI
server budgets.
AMD’s Q2 report
is a tale of two halves, strong top‑line growth and solid PC/gaming momentum on
one side, and data‑center AI struggles and margin pain on the other. The long
view bets on MI350 and the AI ramp, but investors wanted more. Guidance is
bullish, but execution on licensing and next‑gen chips will need to prove it.
You can read the press release covering the report, here.
For more stories around the edges of finance and technology, visit
our Trending pages.
Revenue beats expectations, data‑center struggles cloud the picture, but new AI
chips give investors something to hang their hats on
In Q2 2025, AMD
posted revenue of roughly $7.685 billion,
up 32 % year over year and ahead of Wall Street’s $7.42 billion consensus. Net
income reached $872m, or $0.54 per share.
Despite the
topline win, profitability took a hit. Adjusted gross margin was 43 %, far
short of the 54 % it could’ve been absent the $800 m charge tied to U.S. export
restrictions on MI308 GPUs destined for China, according to AMD.
$AMD AMD Q2 FY25:
• Revenue +32% Y/Y to $7.7B ($0.3B beat).
• Operating margin -2% (-6pp Y/Y).
• Non-GAAP EPS $0.48 (in-line).
• Q3 revenue +28% Y/Y to $8.7B ($0.4B beat).Dr. Lisa Su: “We are seeing robust demand across our computing and AI product portfolio and are well… pic.twitter.com/e1q3fSM2sv
— App Economy Insights (@EconomyApp) August 5, 2025
Lisa Su, AMD CEO (AMD).
“We delivered strong revenue growth
in the second quarter led by record server and PC processor sales,” said Dr.
Lisa Su, AMD Chair and CEO. “We are seeing robust demand across our
computing and AI product portfolio and are well positioned to deliver
significant growth in the second half of the year, driven by the ramp of our
AMD Instinct MI350 series accelerators and ongoing EPYC and Ryzen processor
share gains.”
Data‑Center
Disappointment Despite AI Hype
AMD’s data‑center
segment generated $3.2 b, a 14 % increase year over year, but that growth was
viewed as underwhelming in context. Investors expected more, especially given artificial
intelligence (AI) ramp expectations. Shares slipped around 5% after hours, perhaps
pointing to disappointment that the company could not better compete with
Nvidia.
Incredible Q2 growth – amazing results – proud to be a part of this remarkable journey! Well done team @AMD pic.twitter.com/RWaiZGfcVo
— Saša Marinković (@SasaMarinkovic) August 5, 2025
The MI308 export
block to China is a major factor here. AMD estimates licensing issues could
cost it up to $1.5 b in sales this year, casting a long shadow over AI‑powered
data‑center growth. However, in July the company announced that the U.S.
Commerce Department had given indications that the export license review had
been restarted and sales could potentially go ahead in the future.
PC
and Gaming Keep Things Rolling
Meanwhile, AMD’s
client and gaming segments delivered stellar performance. Client revenue jumped
57 % to $2.5 b off “Zen 5” Ryzen desktop CPU demand. Gaming revenue surged 73 %
to $1.1 b, thanks to Radeon GPU strength and semi‑custom wins. These gains
helped buffer the damage done in margins and data‑center softness.
AI
Ramp and Q3 Guidance Shine Through
Even with its AI
data revenue underperforming, AMD is leaning hard on optimism around its
upcoming MI350 series accelerators. The company says demand is strong, and it
expects those chips to power data center expansion in H2.
For Q3, AMD is
guiding revenue of about $8.7 b,
plus or minus $0.3 b, which is above expectations.
Cynical
Perspective: Why the Hype vs Reality Gap?
On paper AMD
delivered. But investor reaction says it wasn’t enough. Profit margins were slashed,
AI data‑center growth met but did not impress, and looming U.S. export controls
still hang over near‑term upside. So even though EPS didn’t crater, growth
expectations are showing cracks.
At AMD #AdvancingAI 2025, we shared many exciting updates on our end-to-end Al solutions, products, and ecosystem, and our vision for the future of AI.
Here are some highlights 👇 pic.twitter.com/hPxZfODZ0k
— AMD (@AMD) June 12, 2025
Still, AMD is
doubling down on AI, with new chips, a server push through the
ZT Systems acquisition and partnerships touted at its Advancing AI
2025 event. That kind of positioning appeals to the growth-seeking, risk‑tolerant
crowd.
What
to Watch Going Forward
- MI308
licensing resolution.
If U.S. approvals come through, that $800 m drag can reverse and margins
could rebound. - MI350
traction.
Execution on AI chip roll‑out will make or break AMD’s next act. - Nvidia
competition.
AMD needs to compete with Nvidia in efficiency and/or price to capture AI
server budgets.
AMD’s Q2 report
is a tale of two halves, strong top‑line growth and solid PC/gaming momentum on
one side, and data‑center AI struggles and margin pain on the other. The long
view bets on MI350 and the AI ramp, but investors wanted more. Guidance is
bullish, but execution on licensing and next‑gen chips will need to prove it.
You can read the press release covering the report, here.
For more stories around the edges of finance and technology, visit
our Trending pages.
