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Mar 29
AMD Q1 2025 Earnings Report
AMD reported strong revenue and earnings growth in Q1 2025 driven by data center and client segment performance.
Key Takeaways
AMD delivered a solid Q1 2025 with $7.4 billion in revenue, significant gains in net income and EPS, and continued strength in its data center and client processor businesses.
Revenue increased to $7.438 billion, driven by strong performance in Data Center and Client segments.
GAAP net income reached $709 million, up significantly from $123 million a year ago.
Data Center segment revenue surged 57% YoY to $3.674 billion.
The company closed its acquisition of ZT Systems, enhancing its AI data center portfolio.
AMD
AMD
AMD Revenue by Segment
Revenue by Segment
Data Center Revenue
CapyFin.comClient Revenue
CapyFin.comGaming Revenue
CapyFin.comEmbedded Revenue
CapyFin.com Forward Guidance
AMD expects Q2 2025 revenue to be approximately $7.4 billion, with non-GAAP gross margin around 43% due to export control-related inventory charges.
Positive Outlook
- Stable revenue outlook at $7.4 billion for Q2 2025.
- Strong growth expected in data center and AI product lines.
- Ongoing expansion in strategic AI partnerships and ecosystem.
- Day-zero support for latest Meta and Google AI models.
- Deployment of AMD GPUs in large-scale AI infrastructures in Europe and by major hyperscalers.
Challenges Ahead
- Export control regulations expected to impact gross margin by 11 percentage points.
- Inventory reserves charge of approximately $800 million anticipated.
- Embedded segment saw continued demand softness.
- Gaming revenue dropped 30% YoY, reflecting weaker semi-custom sales.
- Restructuring and amortization expenses continue to pressure operating costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income