AMD Reports First Quarter 2025 Financial Results

[AleksandarK]

AMD today announced financial results for the first quarter of 2025. First quarter revenue was $7.4 billion, gross margin was 50%, operating income was $806 million, net income was $709 million and diluted earnings per share was $0.44. On a non-GAAP(*) basis, gross margin was 54%, operating income was $1.8 billion, net income was $1.6 billion and diluted earnings per share was $0.96.

"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," said Dr. Lisa Su, AMD chair and CEO. "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."




"We grew first quarter revenue 36% year-over-year and delivered significant earnings leverage as our business gains scale," said AMD EVP, CFO and Treasurer Jean Hu. "We continue to invest in R&D and go-to-market initiatives, positioning the company for long-term growth and value creation for our shareholders."

Segment Summary

• Data Center segment revenue in the quarter was $3.7 billion, up 57% year-over-year primarily driven by growth in AMD EPYC CPU and AMD Instinct GPU sales.
• Client and Gaming segment revenue in the quarter was $2.9 billion, up 28% year-over-year. Client revenue was $2.3 billion, up 68% year-over-year primarily driven by strong demand for the latest "Zen 5" AMD Ryzen processors and a richer mix. Gaming revenue was $647 million, down 30% year-over-year primarily due to a decrease in semi-custom revenue.
• Embedded segment revenue in the quarter was $823 million, down 3% year-over-year as demand in end markets remained mixed.

Recent PR Highlights

• AMD closed the acquisition of ZT Systems, bringing together leadership systems and rack-level expertise with AMD GPU, CPU and networking silicon and open-source software to address the $500 billion data center AI accelerator opportunity in 2028.
• AMD expanded strategic partnerships aimed at delivering AMD AI solutions and continued to invest in enhancing developer tools and support:
• AMD continues to deepen support for frontier AI models on AMD Instinct GPUs with AMD ROCm software, delivering day-zero support for the latest Meta AI Llama 4 models and Google Gemma 3 models.
• AMD delivers leadership inference performance on DeepSeek-R1, leveraging continuous optimization of the ROCm software stack and the latest vLLM offerings.
• Core42, G42's digital infrastructure company, announced it is broadly deploying AMD Instinct GPU technology to establish one of France's most powerful AI compute facilities.
• Dell Technologies announced the expansion of its AI for Telecom offering powered by AMD.
• The Commissariat à l'énergie atomique et aux énergies alternatives (CEA) of France and AMD announced a collaboration to advance technologies, component and system architectures to shape the future of AI computing.
• AMD, Jio Platforms Limited, Cisco and Nokia announced the formation of a new Open Telecom AI Platform that will offer AI-driven solutions to enhance efficiency, security and capabilities.
• AMD announced support of the latest UALink 1.0 specification, an open, industry-standard, low-latency, high-bandwidth interconnect for scale-up AI.
• Leading hyperscalers continue expanding their deployments of AMD EPYC CPUs to power their internal infrastructure and public cloud offerings:
• Oracle Cloud Infrastructure announced the OCI Compute E6 shapes, enabling impressive cost to performance improvements over its previous generation.
• Google Cloud announced C4D and H4D virtual machines delivering leadership performance, scalability, and efficiency for demanding general purpose and HPC cloud workloads.
• AMD is delivering incredible gaming and content creation experiences with the latest AMD Ryzen and Radeon products and software:
• New Radeon RX 9070 XT and RX 9070 graphics cards based on the AMD RDNA 4 graphics architecture offer gamers and creators a powerful blend of performance, visuals and value.
• AMD FidelityFX Super Resolution 4 is an AI-accelerated frame generation technology that delivers incredible performance and image quality for gamers on the latest Radeon RX graphics cards.
• AMD Ryzen 9 9950X3D and Ryzen 9 9900X3D processors leverage 2nd Gen AMD 3D V-Cache technology to deliver leadership performance and power efficiency.
• AMD expanded its portfolio for embedded markets:
• New AMD EPYC Embedded 9005 Series processors deliver server-grade performance and energy efficiency combined with purpose-built features for networking, storage and industrial edge markets.
• AMD Versal AI Edge XQRVE2302 adaptive SoCs are now available, bringing AI inferencing to space in a small form factor.
• Napatech and Druid Software announced the availability of a high-performance, energy-efficient 5G core powered by the AMD Virtex UltraScale+ XCVU5P FPGA.

Current Outlook
AMD's outlook statements are based on current expectations. The following statements are forward-looking and actual results could differ materially depending on market conditions and the factors set forth under "Cautionary Statement" below.

For the second quarter of 2025, AMD expects revenue to be approximately $7.4 billion, plus or minus $300 million. Non-GAAP gross margin is estimated to be 43% inclusive of approximately $800 million in charges for inventory and related reserves due to the new export controls as previously disclosed in AMD's Current Report on Form 8-K filed on April 16, 2025. Excluding this charge, non-GAAP gross margin would be approximately 54%.

AMD Teleconference
AMD will hold a conference call at 2:00 p.m. PT (5:00 p.m. ET) today to discuss its first quarter 2025 financial earnings results. AMD will provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at www.amd.com.


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[kondamin]

I wonder how much of that revenue came from panic buying to avoid tariffs as that will impact the rest of the year.

 

[EatingDirt]

Went pretty well for them in Q1. Beat estimates by almost 5%. Might be the one time we see AMD stock not dip by 10% on an earnings call in the last few years.

 

[Wirko]

Went pretty well for them in Q1. Beat estimates by almost 5%. Might be the one time we see AMD stock not dip by 10% on an earnings call in the last few years.

Their stock price is staying flat... So beating expectations by 5% is necessary for stocks to not drop?

 

[Philaphlous]

Investors are like meh.... premarket isn't doing much....

Pretty good numbers... slightly down from QoQ but nothing to scoff at...

I'd imagine we'll start hearing soon cuts that AMD is going to make to reduce overhead...

 

[phanbuey]

I wonder how much of that revenue came from panic buying to avoid tariffs as that will impact the rest of the year.

alot of it.

I know most people bought ahead knowing it was coming.

Still they really missed the buying spree - not enough 395 Max chips and not enough 9070s by a mile.

 

[Baba]

Data Center and Client growing while Gaming and Embedded getting smaller. Although last two Q's Gaming saw an uptick. Gaming shrank 64% from 2y ago. AMD is not investing in GPUs for gaming. It axed RDNA to save costs.

If there was any pre-tarrif buying, that's very bad news as their biggest segments were down Q/Q. Only gaming was up. Probably due to the rush to get 9070s.