Record Second Quarter and Optimistic Outlook for Q3 2025
Advanced Micro Devices (AMD) has forecasted third-quarter 2025 revenue significantly above Wall Street expectations, underlining robust demand in the artificial intelligence (AI) chip sector and growth in the company’s data center and PC businesses[1][2][3][4].
- Q3 2025 Revenue Forecast: Approximately $8.7 billion, plus or minus $300 million, surpassing analyst consensus of $8.32 billion[1][2][3][4].
- Q2 2025 Results: Revenue reached a record $7.7 billion, up 32% year-over-year, with strong gains in the data center and client processor segments[1][2].
- Adjusted Earnings per Share: Flat at $0.48, in line with expectations[1][2].
AI Demand Drives Data Center Growth
AMD reported that the second quarter was shaped by remarkable strength in its data center and client processor segments, fueled by surging AI demand and notable adoption of its MI300 and MI350 accelerator chips[2].
- Major cloud customers including Microsoft, Meta, and OpenAI have contributed to the strong momentum behind the MI350 chip line[2].
- The company is accelerating production for its MI350 and next-generation MI400 series to meet hyperscale and enterprise demand for AI hardware[2].
Impact of Export Controls and Market Dynamics
AMD noted that Q2 results were impacted by U.S. government export controls on certain data center GPU products, notably the MI308. This led to an $800 million inventory and related charges, affecting gross margin, which came in at 40% GAAP and 43% non-GAAP[1][2].
Despite this setback, CEO Dr. Lisa Su stated the company is seeing “robust demand across our computing and AI product portfolio,” and is poised for substantial growth in the second half of 2025, driven by AI momentum and continued server and PC processor share gains[1][2].
Segment Performance Highlights
- Data Center Revenue: $3.2 billion, up 14% year-over-year[2].
- Client & Gaming Revenue: $3.6 billion, up 69% year-over-year[2].
- Embedded Segment: $824 million, down 4% year-over-year[2].
For more information, refer to the official
AMD Q2 2025 press release.
