Companies /Technology

Advanced Micro Devices Inc

NASDAQ: AMD Semiconductors
$477.57
▲ $21.41 (+4.69%) today
Markets closed · 8:47pm ET

Q2 2025 Earnings

Reported Aug 5, 2025, 4:16pm ET · SEC source
$0.48
Miss −0.54%
EPS · est. $0.48
$7.7B
Beat +3.43%
Revenue · est. $7.4B
−9.7%
Trailing market
AMD vs S&P since report
4 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0Aug 5Aug 6report 4:16pm ETearnings+0.8%−6.6%
−8%−4%0Aug 5Aug 6earnings+0.8%−6.6%
AMD −6.6%S&P 500 +0.8%
−8%−4%0Aug 5Aug 6report 4:16pm ETearnings+1.3%−6.6%
−8%−4%0Aug 5Aug 6earnings+1.3%−6.6%
AMD −6.6%NASDAQ +1.3%
−5%0+5%+10%Aug 4Aug 13report 4:16pm ETearnings+2.7%+9.6%
−5%0+5%+10%Aug 4Aug 13earnings+2.7%+9.6%
AMD +9.6%S&P 500 +2.7%
−5%0+5%+10%Aug 4Aug 13report 4:16pm ETearnings+3.7%+9.6%
−5%0+5%+10%Aug 4Aug 13earnings+3.7%+9.6%
AMD +9.6%NASDAQ +3.7%
−6.42%
Day of report
+5.69%
Next session
+13.06%
One week
−7.18%
30 days

S&P 500 over the same 30 days: +2.54%.

Did AMD Beat Earnings? Q2 2025 Results

Advanced Micro Devices delivered a mixed but broadly encouraging second quarter, posting revenue of $7.68 billion, up 31.7% year over year and ahead of the $7.43 billion consensus by 3.43%, even as a non-GAAP EPS of $0.48 came in just shy of the $0.48 analyst estimate, a miss of 0.54%. The quarter's defining event was roughly $800 million in inventory and related charges tied to U.S. government export controls on AMD's Instinct MI308 GPUs destined for China, a headwind that pushed GAAP operating results to a loss of $134 million and compressed non-GAAP gross margin to 43%, well below the 54% the business would have otherwise generated. Stripping out those charges, AMD's underlying mix looked healthy, with Client and Gaming revenue climbing 69% year over year to $3.62 billion on record Ryzen CPU demand and strong semi-custom shipments. Free cash flow reached $1.18 billion, and AMD guided Q3 revenue to approximately $8.70 billion, implying roughly 28% year-over-year growth, with non-GAAP gross margin expected to recover to approximately 54% as the MI308 export situation awaits regulatory resolution.

Key Takeaways
  • Record server CPU (EPYC) and client PC processor (Ryzen) sales
  • Strong semi-custom gaming revenue growth (73% YoY)
  • EPYC processor share gains across cloud and enterprise customers
  • Richer client product mix driving improved Client and Gaming segment margins
  • Record free cash flow of $1.18 billion

“We delivered strong revenue growth in the second quarter led by record server and PC processor sales. 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.”

AMD CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2025, AMD expects revenue of approximately $8.7 billion, plus or minus $300 million, representing year-over-year growth of approximately 28% and sequential growth of approximately 13%. Non-GAAP gross margin is expected to be approximately 54%. Non-GAAP operating expenses are expected to be approximately $2.55 billion, with an effective tax rate of approximately 13% and diluted share count of approximately 1.63 billion shares. The current outlook does not include any revenue from AMD Instinct MI308 shipments to China as license applications are currently under review by the U.S. Government.

AMD YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$3.0B$6.0B$5.8B$7.7BRevenue$2.9B$3.1BGross Profit$265.0M$872.0MNet Income
$0$3.0B$6.0BRevenueGross ProfitNet Income

AMD Revenue by Segment

Data Center$3.2B+14.0%
Client$2.5B+67.0%
Gaming$1.1B+73.0%
Embedded$824.0M−4.0%

Figures from SEC filings and company reports. Not investment advice.