Financial Performance - AMD reported record Q3 2025 revenue of $9.2 billion, a 36% year-over-year increase[17] - The GAAP gross margin was 52%, up 2 percentage points year-over-year[21,29] - Non-GAAP gross margin was 54%, flat year-over-year[21,30] - GAAP diluted earnings per share (EPS) increased 60% year-over-year to $0.75[27,29] - Non-GAAP diluted EPS increased 30% year-over-year to $1.20[27,30] Segment Results - Data Center revenue reached $4.3 billion, a 22% year-over-year increase[31,34] - Client & Gaming segment revenue was $4.0 billion, up 73% year-over-year[31,36] - Embedded segment revenue was $857 million, down 8% year-over-year[31,37] Q4 2025 Outlook (Non-GAAP) - Revenue is expected to be approximately $9.6 billion, plus or minus $300 million[38] - Gross margin is projected to be around 54.5%[38]

Core Insights - AMD FSR 4 has made significant advancements in upscaling technology, although it does not match the quality of NVIDIA DLSS 4, it offers better image quality than its predecessor [1][2] - The new technology, driven by machine learning and exclusive to RDNA 4 GPUs, addresses major image quality issues from previous versions, particularly in complex motion scenarios [1][4] - AMD FSR 4 can outperform older CNN models from NVIDIA in certain situations, such as static or slow-moving objects, but still lags behind NVIDIA's new Transformer model in detail resolution [2][3] Performance Comparison - In terms of performance, AMD FSR 4 is approximately 8% slower than FSR 3 when using performance preset settings, but the trade-off is considered worthwhile due to improved image quality [1] - The technology resolves issues like ghosting in particle effects, detail loss in transparent surfaces, and enhances surface detail for low relative motion objects [1][2] Collaboration and Development - AMD FSR 4 is a result of collaboration between AMD and Sony, aimed at developing high-performance AI architectures for various platforms including PCs and consoles [2][3] - The partnership is part of a broader initiative, with the Amethyst project announced by Sony, focusing on machine learning applications for gaming [2][3] Market Positioning - AMD has positioned FSR 4 as a significant upgrade for users of the RX 9000 series GPUs, similar to how NVIDIA has limited DLSS to its GeForce RTX series [4]