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Mar 29, 2025
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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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