AMD posted record revenue of $7.7 billion in the second quarter of 2025, up 32% year-over-year, driven by strong sales of EPYC server processors and Ryzen client CPUs. Net income rose to $872 million, or $0.54 per share, compared with $265 million a year earlier. However, U.S. government export restrictions on AMD’s Instinct MI308 GPUs reduced results, leading to $800 million in charges and pushing gross margin down to 40% from 49% a year ago. Excluding these charges, non-GAAP gross margin would have been closer to 54%.
By segment, data center revenue reached $3.2 billion, up 14% despite limited Instinct shipments to China. Client and gaming revenue jumped 69% to $3.6 billion, with Ryzen “Zen 5” processors and Radeon GPUs in strong demand. Embedded revenue slipped 4% to $824 million as end-market conditions remained mixed. Looking ahead, AMD expects third quarter revenue of around $8.7 billion, with gross margin recovering to approximately 54%, as MI350 GPU shipments ramp and EPYC share gains continue.
The company also highlighted major AI ecosystem announcements, including new Instinct MI350 GPUs, the upcoming “Helios” rack-scale platform, and expanded partnerships with Meta, Microsoft, Oracle, Red Hat, and Nokia. AMD said it now powers 172 systems on the latest Top500 list, including the two fastest supercomputers, El Capitan and Frontier. The company also agreed to sell ZT Systems’ data center infrastructure manufacturing unit to Sanmina for $3 billion.
• Q2 2025 revenue: $7.7B, up 32% Y/Y
• Net income: $872M, EPS $0.54 GAAP; non-GAAP EPS $0.48
• Data Center revenue: $3.2B, up 14%
• Client & Gaming revenue: $3.6B, up 69%
• Embedded revenue: $824M, down 4%
• Export controls on Instinct MI308 GPUs caused $800M in charges
• Q3 outlook: ~$8.7B revenue, 54% non-GAAP gross margin
“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.”
🌐 Why it Matters: AMD’s results underscore the rising demand for AI and high-performance compute despite regulatory headwinds. With export controls affecting GPU sales to China, AMD’s ability to diversify its AI hardware ecosystem and deepen partnerships with major hyperscalers will be critical to competing against NVIDIA and Intel in the next phase of data center growth.
🌐 We’re tracking the latest developments in semiconductors. Follow our ongoing coverage at: https://convergedigest.com/category/semiconductors/
