Live: AMD Beats Q2 Earnings But Shares Sink 4%

Wall Street kept pushing for AMD to give a more specific number on the data center ramp in the second half of the year, but AMD held back on giving specific figures. That was probably the one thing AMD could have said in its conference call that would have reversed declines tomorrow, but it looks like the company will withhold updating any full-year guidance on AI revenue.

This concludes our live blog. As of 6 p.m. ET at the conclusion of the call, AMD shares are down about 3.6%.

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Here’s what AMD had to say about approval of its chips in China:

Thomas O’Malley Barclays Bank PLC, Research Division

Super helpful. And then secondly, I was hopeful you could provide us a little more color on China. So the guide doesn’t include MI308, but perhaps you could comment on when you get approval, if the supply chain is ready, what’s currently in inventory and maybe compare what you think the contribution will look like versus the $700 million in Q2 and the $800 million for the second half you spoke about in April?

Lisa Su Chief Executive Officer

Sure, Tom. So yes, let me answer some of the questions on China. I’m sure that there are some questions. Look, we’re very pleased with the progress that’s been made with the administration over the last couple of months. We’ve been working very closely with the administration. I think the focus here on ensuring that U.S. technology gets utilized throughout the world is something that we certainly support and very much want to contribute to. China is an important market for us. Given the timing of licenses, we have a number of licenses that are under review now. We are working with the Department of Commerce to get those reviewed. We do expect that once those licenses are approved, we will start MI308 shipments. In terms of the supply chain, most of our inventory was not in finished goods so it was work in process, and it will take us a couple of quarters to run through that. The exact timing of revenue and contribution will depend a bit on when those are — when the licenses are actually granted. But overall, I think this is a better position than we were 90 days ago. And we certainly view China as a market that we would like to service with MI308. And we’re working closely with the administration to do that.

Agentic AI is the next major growth driver in demand, and AMD was quick to call out its impacts in its earnings call:

“Turning to the segments. Data Center segment revenue increased 14% year-over-year to $3.2 billion. We saw robust demand across our EPYC portfolio to power cloud and enterprise workloads and increasingly for emerging AI use cases. In particular, adoption of agentic AI is creating additional demand for general purpose compute infrastructure as customers quickly realize that each token generated by a GPU triggers multiple CPU-intensive tasks.

Against this backdrop, fifth-gen EPYC Turin shipments ramped significantly, and we had sustained demand for our prior generation EPYC processors. “

We’re listening to AMD’s earnings call and will post notes. Simply leave this live blog open and updates will appear. We expect the call to last about 45 minutes or so.

You can register to listen in here.

Before the call shares have slightly rebounded and are now down 3.5%.

Here’s a figure Wall Street is watching after hours:

• Data Center Segment Revenue: $3.2B [✅]; UP +14% YoY

That 14% growth rate isn’t great considering the growth of the AI space. Yet, there were complications from China export controls and AMD is ramping new chips in the space.

Commentary on AMD’s conference call around data center demand could lessen losses when the stock opens tomorrow.

We posted it earlier, but the segment growth rates for AMD are as follows:

• Data Center Segment Revenue: $3.2B [✅]; UP +14% YoY
• Client and Gaming Segment Revenue: $3.6B [✅]; UP +69% YoY
• Embedded Segment Revenue: $824M [✅]; DOWN -4% YoY

That’s an impressive result for Client & Gaming.

We’ll see if the company’s conference call stems some of the losses. Overall, its a solid quarter but investors appear to be taking gains after the stock jumped nearly 30% in the past month alone.

AMD: Down 4.8%

Astera Labs: Up 11.8%

Arista Networks: Up 11.3%

Super Micro: Down 15.2%

AMD beat on the top line last quarter but matched Wall Street expectations for EPS. That was due to margin compression, with gross margins at 43% last quarter.

AMD guided toward 54% margins in Q3, but this level of margin compression may be ‘spooking’ Wall Street.

AMD shares are now down about 3% after initially moving up about 1%.

Guidance of about $8.7 billion at the midpoint for next quarter is strong, but shares are trending south.

AMD | Advanced Micro Devices Q2’25 Earnings Highlights:

• Adj. EPS: $0.48 ✅; UP +30% YoY
• Revenue: $7.7B [✅]; UP +32% YoY
• Comparable Sales: N/A
• Adj. Gross Margin: 43% [✅]; DOWN -10 bps YoY
• Net Income: $0.872B [✅]; UP +229% YoY

Outlook:

• Revenue: $8.7B ±$300M [✅]
  • AMD expects revenue growth driven by strong demand across its computing and AI product portfolio.
  • Guidance does not include revenue from AMD Instinct MI308 shipments to China due to ongoing U.S. Government licensing reviews.

Q2 Segment Performance:

• Data Center Segment Revenue: $3.2B [✅]; UP +14% YoY
• Client and Gaming Segment Revenue: $3.6B [✅]; UP +69% YoY
• Embedded Segment Revenue: $824M [✅]; DOWN -4% YoY

Other Key Q2 Metrics:

• Adj. Operating Income: $0.897B [✅]; DOWN -29% YoY
• Adj. Operating Expenses: $2.429B [✅]; UP +32% YoY
• Free Cash Flow: $1.180B; UP +169% YoY
• Effective Tax Rate: N/A
• Cash, Cash Equivalents, and Short-term Investments: $5.867B
• Total Debt: $3.218B

CEO Commentary:

• Dr. Lisa Su: “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.”

CFO Commentary:

• Jean Hu: “We achieved 32% year-over-year revenue growth and generated record free cash flow this quarter, reflecting our disciplined execution. Our strategic investments across hardware, software and systems position us well to support robust future growth and drive long-term shareholder value.”

Strategic Updates:

• AMD announced its latest AI solutions and roadmap at Advancing AI 2025, including the AMD Instinct MI350 Series GPUs and systems, and the AMD Developer Cloud for on-demand access to high-performance AMD Instinct MI300X GPUs.
• AMD entered into a definitive agreement to sell ZT Systems’ data center infrastructure manufacturing business to Sanmina for $3 billion in cash and stock, expected to close near the end of 2025.

Okay, here we go…

Revenue of $7.685 billion beats expectations of $7.43 billion.

EPS is in line.

Shares are initially up about 1%.

As a heads up, AMD earnings have yet to drop.

We will post news and analysis when they hit.

It’s almost 4 p.m. ET and we’re ready to break down AMD’s earnings right after they hit.

If you’re investing in AMD in large part because of bullishness on AI spending, make sure to also pay attention to Supermicro, Aster Lab, and Arista Networks’ earnings tonight.

Each will give read through into broader AI spending.

We’re now about an hour away from AMD releasing earnings. The stock is down .78% on the day, but that’s in line wiht most tech stocks and the Nasdaq Composite has dropped .58% for the day.

One important area to watch for when AMD reports is the Q3 guide. Wall Street expects the company to deliver $8.32 billion in revenue next quarter. If AMD guides above that it could be a catalyst for a big move once the market opens tomorrow.

“AI is by far our fastest-growing data-center workload; we expect that business to grow from billions this year to tens of billions over the next couple of years.”

Share gains at large cloud customers and an on-schedule Genoa ramp are key to sustaining high-margin growth; any softness there would be an early warning sign.

“We’re seeing continued strength in EPYC share gains across hyperscalers, and the next-generation Genoa platform is ramping ahead of plan.”

This underscores AMD’s confidence in its AI-optimized CPU and GPU platforms driving not just near-term upside but a multiyear acceleration—tonight’s results will show whether that trajectory is already playing out in Data Center revenue growth.

AMD has beaten consensus in four straight quarters; the outsized average 7-day post-earnings move of +–2.56 % (driven by the +11.8 % Q1 reaction) underscores the market’s “buy the beat” sentiment and sets a high bar for Q2.