AMD Reports First Quarter 2025 Financial Results

Core Insights - AMD reported a strong financial performance for Q1 2025, with revenue reaching $7.4 billion, a 36% increase year-over-year, and a gross margin of 50% [1][2] - The company emphasized growth in its core businesses, particularly in data center and AI segments, and expressed confidence in its product portfolio for continued growth in 2025 [2][12] Financial Performance - Q1 2025 revenue was $7,438 million, up from $5,473 million in Q1 2024, reflecting a 36% year-over-year increase [2][5] - Gross profit for Q1 2025 was $3,736 million, a 46% increase from $2,560 million in Q1 2024 [2][5] - Operating income surged to $806 million, compared to $36 million in Q1 2024, marking a 2,139% increase [2][5] - Net income reached $709 million, up 476% from $123 million in Q1 2024, with diluted earnings per share at $0.44, a 529% increase [2][5] Segment Performance - Data Center segment revenue was $3.7 billion, up 57% year-over-year, driven by AMD EPYC CPU and AMD Instinct GPU sales [8] - Client segment revenue was $2.3 billion, up 68% year-over-year, attributed to strong demand for "Zen 5" AMD Ryzen processors [8] - Gaming segment revenue was $647 million, down 30% year-over-year, primarily due to a decrease in semi-custom revenue [8] - Embedded segment revenue was $823 million, down 3% year-over-year, reflecting mixed demand in end markets [8] Outlook - For Q2 2025, AMD expects revenue to be approximately $7.4 billion, with a non-GAAP gross margin estimated at 43%, factoring in $800 million in charges related to inventory and reserves due to new export controls [10][12] - The company continues to invest in R&D and market initiatives to support long-term growth and shareholder value [2][12] Strategic Developments - AMD completed the acquisition of ZT Systems, enhancing its capabilities in the data center AI accelerator market, projected to be worth $500 billion by 2028 [12] - The company is expanding partnerships to deliver AI solutions and enhancing developer tools for AI applications [12]