Advanced Micro Devices reported a record $7.7 billion (up 32%) in revenue for the second quarter ended June 30 — a solid result in spite of a ban on high-end chip sales to China.
AMD said its gross margin was 40%, operating loss was $134 million, net income was $872 million and diluted earnings per share was 54 cents.
On a non-GAAP basis, gross margin was 43%, operating income was $897 million, net income was $781 million and diluted earnings per share was 48 cents.
As previously announced, AMD said second quarter results were impacted by the U.S. government’s export control on the AMD Instinct MI308 data center GPU products. For the
quarter, these restrictions led to approximately $800 million in inventory and related charges.
Excluding these charges, non-GAAP gross margin would have been approximately 54%.
“We delivered strong revenue growth in the second quarter led by record server and PC
processor sales,” said Lisa Su, AMD CEO, in a statement. “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.”
“We achieved 32% year-over-year revenue growth and generated record free cash flow this quarter, reflecting our disciplined execution,” said Jean Hu, AMD EVP and CFO and treasurer, in a statement. “Our strategic investments across hardware, software and systems position us well to support robust future growth and drive long-term shareholder value.”
Segment breakouts
- Data Center segment revenue was $3.2 billion, up 14% year-over-year primarily driven by strong demand for AMD EPYCTM processors more than offsetting headwinds impacting AMD Instinct MI308 shipments to China.
- Client and Gaming segment revenue was $3.6 billion, up 69% year-over-year. Client
revenue was a record $2.5 billion, up 67% year-over-year primarily driven by strong
demand for the latest “Zen 5” AMD RyzenTM desktop processors and a richer product mix. Gaming revenue was $1.1 billion, up 73% year-over-year driven by an increase in semi-custom revenue and strong AMD RadeonTM GPU demand. - Embedded segment revenue was $824 million, down 4% year-over-year as demand in end markets remained mixed.
During the quarter, AMD announced new AI products at Advancing AI 2025 and announced partnerships with Meta, OpenAI, xAI, Oracle and Microsoft. It also announced Dell as a customer for the first time for Epyc series processors and more. AMD debuted its new AMD Instinct MI350 Series GPUs, new Ryzen Threadripper CPUs, Radeon RX 9060 XT gaming graphics, a Helios rack-scale solution, AMD ROCm 7 open-source AI software stack, new Epyc CPUs,
Current Outlook
AMD’s outlook for the third quarter of 2025 shows expected revenue at $8.7 billion, plus or minus $300 million. At the mid-point of the revenue range, this represents year-over-year growth of approximately 28% and sequential growth of approximately 13%. Non-GAAP gross margin is expected to be approximately 54%. The current outlook does not include any revenue from AMD Instinct MI308 shipments to China as the license applications are currently under review by the U.S. government.