Question AMD 2Q25 Earnings

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Hitman928

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Apr 15, 2012
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As previously announced, our second quarter results were impacted by the U.S. Government's export control on our 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%.

Segment Summary
  • Data Center segment revenue was $3.2 billion, up 14% year-over-year primarily driven by strong demand for AMD EPYC™ 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 Ryzen™ 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 Radeon™ GPU demand.
  • Embedded segment revenue was $824 million, down 4% year-over-year as demand in end markets remained mixed.
For the third quarter of 2025, AMD expects revenue to be approximately $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%. Our current outlook does not include any revenue from AMD Instinct MI308 shipments to China as our license applications are currently under review by the U.S. Government.

 
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jpiniero

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The gaming revenue is... interesting. Almost has to be R&D payment installment.

I'm expecting Sony to raise the price of the PS5 in the US soon too.
 
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desrever

desrever

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Nov 6, 2021
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Mediocre quarter, uptake on instinct must be slow.

Guide for next Q is pretty much also just mediocre.
 
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jpiniero

Lifer
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adroc_thurston said:
Lmao that's not how any of that works.
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Why wouldn't it? MS is making a new console, Sony is making new consoles. Doesn't make much sense otherwise. Like I said I kind of expect Sony to raise the price of the PS5 in the US soon so I imagine they wouldn't be buying a lot. MS already raised the price of XBox Series and sales are already kind of dead anyway.
 
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Joe NYC

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jpiniero said:
The gaming revenue is... interesting. Almost has to be R&D payment installment.

I'm expecting Sony to raise the price of the PS5 in the US soon too.
Click to expand...

No, AMD implied this was silicon for upcoming Christmas shopping season (at lower than corporate margin) and also dGPU revenue increase.

During the previous CCs, AMD said that there were some inventories of console chips, being worked down, but it appears, the inventories were gone by Q2 and bigger orders were placed.
 
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Joe NYC

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desrever said:
Mediocre quarter, uptake on instinct must be slow.

Guide for next Q is pretty much also just mediocre.
Click to expand...

Are we residing in the same universe?

This was an excellent quarter, and old Mi300/Mi325, which were at lower profit margins, did not sell very well, are finally exiting the picture.

There is nothing AMD could do about the (temporary) ban of Mi308 GPUs to China, and all of the consequences were absorbed in Q2, and even despite that, AMD had the highest revenue quarter in history
 
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Joe NYC

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In client revenue:
AMD is up 66% vs. a year ago
Intel is down (undermined number)

Hard to say how Intel client is performing since they now padded its totals by transferring into it NEX revenue.
 
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Joe NYC

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Saylick said:
The quick and dirty is that everyone who is invested in AMD is just itching for them to have their exponential growth moment a la Nvidia, but most are rather impatient hence why the stock always gets battered after earnings.

Typical impatient AI investors:
View attachment 128340
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The difference is that in previous 3 investor calls, AMD gave either poor or no guidance on the datacenter GPU revenue, and this time, AMD gave strong guidance.

It seems that this time, the immediate reaction is misinterpreting the results. I expect the Wall Street analysts to work the strong guidance into their models and over time, it will be understood better.
 
Quintessa

Quintessa

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Jun 23, 2025
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jpiniero said:
The gaming revenue is... interesting.
Click to expand...
Zen 5 launched hard. Ryzen 9000 clearly moving well, especially with the mid/high-end DIY crowd. Also wild to see Radeon making a comeback, probably fueled by the 7900/7800XT price drops and 9700/9800 leaks.
 
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jpiniero

Lifer
Oct 1, 2010
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Joe NYC said:
No, AMD implied this was silicon for upcoming Christmas shopping season (at lower than corporate margin)
Click to expand...

Feels like last quarter would be too early for the holiday season... but I forgot about GTA 6. Yeah Rockstar delayed it but Sony might have scheduled a big order a long time ago in anticipation.

Sony is kinda screwed because Orange Man means they almost will be raising prices in the US.
 
adroc_thurston

adroc_thurston

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Joe NYC said:
Additionally + $1 billion QoQ revenue guidance for Q3. And that's up from record quarterly revenue.
Click to expand...
yeah Q3 is solid without even accounting for possible china GPU sales.
jpiniero said:
Yeah Rockstar delayed it but Sony might have scheduled a big order a long time ago in anticipation.
Click to expand...
that's not how any of that works.
That's not how supply chain elasticity works.
 
Markfw

Markfw

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May 16, 2002
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Joe NYC said:
Are we residing in the same universe?

This was an excellent quarter, and old Mi300/Mi325, which were at lower profit margins, did not sell very well, are finally exiting the picture.

There is nothing AMD could do about the (temporary) ban of Mi308 GPUs to China, and all of the consequences were absorbed in Q2, and even despite that, AMD had the highest revenue quarter in history
Click to expand...
yes, I agree it was good quarter. and yes what planet is he from. probably the Intel universe
 
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Joe NYC

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jpiniero said:
The results kind of reinforce that AMD is only going to be a bit player in AI. Still a lot of money but not hype train money. And that's what WS cares about.
Click to expand...

There was a lot of misunderstanding in how far behind AMD was in combination of GPU hardware, software and networking.

And it is a combination of all 3 that allows you to have a competitive offering in the market place. Without all 3, AMD was just fighting for crumbs, offering Mi300/Mi325 at lower margins than NVidia.

With Mi300/325, AMD was fighting for only about 5% of TAM - in other words, even in the ideal world, AMD could not exceed the 5%.

With Mi355 that percentage of TAM may go up to 10-15%. It is competitive wherever the number needed of GPUs connected is within 8.

With Mi400 that percentage of TAM AMD can compete can possibly go all the way to 100%.

The initial high expectations how far AMD can get to with Mi300/308/325 were unrealistic. But the story is - how fast AMD is closing the gap. With Mi355, AMD can not only grow with the growing market, but start nibble at NVidia market share. And then, all bets are off with Mi400 full rack systems are available on the market.
 
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Joe NYC

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Tuna-Fish said:
Amd now has ~60% the revenue and ~85% the gross profit of Intel.
Click to expand...

Wow, hard to believe.

Moving on to Q3, Intel is guiding revenue up only $200m (12.9 to 13.1 midpoint) or +1.6% while AMD is guiding up $1 billion (7.7 to 8.7 billion) which is +13%
 
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