AMD Q2 2025 Financial Highlights: Revenue Breaks Records

On August 5, 2025, semiconductor giant AMD (Advanced Micro Devices) announced its Q2 2025 earnings, delivering a revenue of $7.685 billion, marking a 32% year-over-year (YoY) increase — a new all-time high for the company.

Under GAAP standards, AMD reported:

*  Gross Margin: 40%

*  Net Income: $872 million

Under Non-GAAP:

*  Gross Margin: 43%

*  Operating Income: $897 million

*  Net Income: $781 million

CEO Dr. Lisa Su emphasized robust growth in server and PC processor sales, citing record demand for the EPYC and Ryzen series, alongside increased momentum in AMD's AI and HPC (High-Performance Computing) product portfolio.

“We’re well-positioned to accelerate growth in the second half of 2025, powered by our strong computing and AI product roadmap,” said Dr. Su.

$800 Million Inventory Hit from MI308 AI Chip Ban

Despite the record-breaking top-line numbers, AMD’s Q2 report wasn’t without a storm cloud.

Due to ongoing U.S. export restrictions targeting advanced AI chips, AMD took an $800 million write-down related to unsold MI308 accelerators — chips now caught in licensing limbo.

Without this charge, AMD’s true Non-GAAP gross margin would have been 54%, highlighting the company's underlying operational strength.

Business Segment Breakdown

AMD’s core business units showed strong performance, with client and gaming segments leading the charge:

Post-Earnings Stock Drop and Market Concerns

Following the earnings call, AMD shares fell over 6% in after-hours trading, triggered by:

• A 31% YoY drop in Non-GAAP net income

• Ongoing uncertainty over MI308 export licensing

• The revelation that unsold chips still require manufacturing before revenue can be recognized

Investors remain cautious amid rising geopolitical tensions and evolving semiconductor export policies.

AI Roadmap: MI350, MI400 and ROCm Ecosystem

AMD isn’t backing down from the AI arms race. At the Advancing AI conference, the company unveiled:

*  MI350 series AI accelerators

*  A full rack-level Helios AI solution

*  ROCm 7 software platform, strengthening AMD’s AI ecosystem

Even more significantly, OpenAI CEO Sam Altman publicly endorsed AMD’s upcoming MI400 series, revealing plans for 500 MW of AMD-based AI deployments — a vote of confidence that could reshape the competitive AI GPU landscape.

Q3 2025 Outlook: Aiming Higher

Looking ahead, AMD is targeting:

*  Q3 Revenue: $8.4–$9.0 billion (YoY growth of 28%)

*  Non-GAAP Gross Margin: 54%

With EPYC and Ryzen chips continuing to gain market share and AI deployments ramping up, AMD is well-positioned to offset geopolitical risks with technical execution and diversified revenue streams.

Final Thoughts: Resilience Amid Uncertainty

While policy headwinds present real challenges, AMD's performance proves its competitive edge is intact. The MI300 series setback may delay revenue, but with MI350 and MI400 on the horizon, AMD is primed for the next wave of AI hardware acceleration.

In the high-stakes battle for AI and data center dominance, AMD isn't just surviving — it’s building momentum.