Advanced Micro Devices Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.87%.
Did AMD Beat Earnings? Q1 2025 Results
Advanced Micro Devices delivered a strong first quarter for 2025, beating Wall Street expectations on both the top and bottom lines as surging data center demand propelled the chipmaker to its fourth consecutive quarter of accelerating growth. AMD posted non-GAAP diluted EPS of $0.96, ahead of the $0.93 consensus estimate by 2.83%, while revenue of $7.44 billion topped expectations by 4.47% and climbed 35.9% from a year earlier. The primary engine behind those results was the Data Center segment, which generated $3.67 billion in revenue, up 57% year over year, driven by robust sales of EPYC CPUs and Instinct GPUs as hyperscalers and sovereign AI operators alike expanded their compute buildouts. AMD also completed its acquisition of ZT Systems and separately announced a $6 billion share repurchase authorization, signaling confidence in its long-term trajectory. Looking ahead, AMD guided Q2 2025 revenue to approximately $7.40 billion, though non-GAAP gross margin is expected to compress to roughly 43% due to an approximately $800 million inventory charge tied to new U.S. export controls, a near-term headwind that clouds an otherwise constructive demand picture.
- Strong AMD EPYC CPU and Instinct GPU sales driving Data Center segment growth of 57% YoY
- Strong demand for Zen 5 Ryzen processors and richer product mix driving Client revenue up 68% YoY
- Non-GAAP gross margin expansion to 54% driven by higher Data Center revenue and richer Ryzen mix
- Year-over-year growth accelerated for the fourth consecutive quarter
“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.”
AMD CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, AMD expects revenue of approximately $7.4 billion, plus or minus $300 million. Non-GAAP gross margin is estimated at approximately 43%, inclusive of approximately $800 million in charges for inventory and related reserves due to new U.S. export controls. Excluding this one-time charge, non-GAAP gross margin would be approximately 54%. Non-GAAP operating expenses are expected to be approximately $2.3 billion. Interest expense/other income (expense) net is expected to be approximately negative $5 million. Non-GAAP effective tax rate is estimated at approximately 13%. Diluted share count is estimated at approximately 1.64 billion shares, including 9 million shares related to the ZT Systems acquisition.
AMD YoY Financials
AMD Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.