Core Viewpoint - AMD continues to gain market share in the desktop and server CPU markets from Intel, but its position in the mobile CPU market has weakened compared to the second half of last year. Despite this, AMD's revenue share has seen significant growth in Q2 2025 compared to the same period last year [2][6]. Summary by Category Desktop CPU Market - AMD's desktop CPU market share reached 32.2% in Q2 2025, a quarter-over-quarter increase of 4.2% and a year-over-year increase of 9.2%. Intel's share was 67.8%, showing a decline in both quarter-over-quarter and year-over-year comparisons [6][8]. - AMD's desktop CPU revenue share rose to 39.3%, with a quarter-over-quarter growth of 4.9% and a year-over-year growth of 20.5%, indicating strong demand for high-end models like Ryzen 7 and Ryzen 9 [9][16]. Server CPU Market - AMD's server CPU market share was 27.3% in Q2 2025, with a slight quarter-over-quarter increase of 0.1% and a year-over-year increase of 3.2%. This reflects a growing demand for its EPYC processors [11][15]. - In terms of revenue, AMD's share in the server CPU market reached 41% in Q2 2025, with a quarter-over-quarter increase of 1.5% and a year-over-year increase of 7.2%, indicating a strong position in the high-end server market [11][15]. Mobile CPU Market - AMD's mobile CPU market share was 20.6% in Q2 2025, showing a quarter-over-quarter decline of 1.9% but a year-over-year increase of 0.3%. Intel maintained a dominant position with a share of 79.4% [9][11]. - AMD's mobile CPU revenue share was 21.5%, down 0.7% from the previous quarter but up 3.9% year-over-year, suggesting that while unit sales have decreased, the company remains competitive in the mid-to-high-end segment [11][16]. Overall Market Trends - AMD has made significant gains in the desktop and server markets, narrowing the gap with Intel, which still leads in overall unit sales. However, AMD's position in the mobile CPU market has weakened over the last two quarters [15][16]. - The overall trend indicates a shift towards AMD in high-performance segments, despite Intel's continued dominance in volume sales across all categories [8][16].

证券研究报告 | 2025年08月11日 电子行业周报 优于大市 GB 系列机柜出货预期有所上修，晶圆代工订单展望乐观 半导体维持高景气，看好模拟及存储左侧布局良机。过去一周上证上涨 2.11%，电子上涨 1.65%，子行业中消费电子上涨 4.27%，元件下跌 1.59%。 同期恒生科技、费城半导体、台湾资讯科技上涨 1.17%、2.72%、2.90%。近 期在北美算力强势上涨的带动下，相关映射链条成为主要情绪拉动点，尤其 是受益于 ASIC 趋势下网络架构的变化而带来显著增量的交换机及服务器产 业链。一方面，供应链近期陆续上修 2026 年英伟达 GB 系列产品出货预 期，算力链业绩高增长趋势再强化；另一方面，台积电预计 AI 需求持 续强劲，非 AI 需求温和复苏，将年收入增速预期由 25%左右上调到 30% 左右；与此同时，中芯、华虹 2Q25 稼动率趋近饱和，订单需求展望乐 观，佐证半导体高景气延续。建议关注基本面趋势逐季强化、有较强品类 扩张及国产替代预期的模拟 IC 及存储模组。当下时点仍坚定看好 25 年电子 板块在"宏观政策周期、产业库存周期、AI 创新周期"共振下的"估值扩张" 行情，坚定推 ...

Financial Data and Key Metrics Changes - The company reported record revenue of $7.7 billion for Q2 2025, a 32% increase year-over-year, exceeding the midpoint of guidance [6][26] - Free cash flow reached over $1 billion, and gross margin was reported at 54% excluding an $800 million inventory write-down related to export controls [6][28] - Operating income was $897 million, representing a 12% operating margin, down from 22% a year ago due to inventory charges [29] Business Segment Data and Key Metrics Changes - Data Center segment revenue increased 14% year-over-year to $3.2 billion, driven by strong demand for EPYC processors [7][30] - Client and Gaming segment revenue surged 69% year-over-year to $3.6 billion, with record client CPU sales and strong demand for gaming products [19][31] - Embedded segment revenue decreased 4% year-over-year to $824 million, reflecting mixed demand across end markets [23][32] Market Data and Key Metrics Changes - The company saw robust demand for its EPYC portfolio, particularly in cloud and enterprise workloads, with significant adoption among hyperscalers [7][8] - The gaming segment experienced a 73% year-over-year revenue increase, driven by strong demand for Radeon GPUs and semi-custom products [21][22] - The company noted a decline in Data Center AI revenue due to U.S. export restrictions impacting MI-308 sales to China [10][30] Company Strategy and Development Direction - The company is focused on expanding its AI capabilities, with significant investments in the MI-350 series and upcoming MI-400 series [12][25] - Strategic partnerships and collaborations, such as with Oracle and Humane, are aimed at enhancing AI infrastructure and capabilities [12][25] - The company aims to capitalize on the growing demand for high-performance computing and AI solutions across various markets [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for high-performance compute and AI solutions, anticipating significant revenue growth in the second half of the year [24][25] - The company is preparing for a ramp in MI-350 series production and expects to see strong adoption in the AI market [10][62] - Management highlighted the importance of regulatory approvals for MI-308 shipments to China, indicating a positive outlook for future revenue contributions from this market [48][49] Other Important Information - The company generated $1.5 billion in cash from operating activities and returned $478 million to shareholders through share repurchases [33][34] - The company is actively working on improving operational efficiencies to enhance gross margins despite the ramp-up of lower-margin products [88] Q&A Session Summary Question: Insights on client business performance and future outlook - Management noted strong performance in the client business, with expectations for continued growth, albeit at a slightly lower rate than the first half of the year [40][44] Question: Update on MI-308 shipments to China - Management is optimistic about resuming MI-308 shipments once licenses are approved, with a focus on working closely with the U.S. administration [48][49] Question: Sovereign opportunities and growth potential - Management indicated that sovereign opportunities are additive to existing growth rates, with significant interest in MI-355 and MI-400 series products [52][55] Question: Data center GPU ramp and revenue expectations - Management expects a strong ramp in data center GPU sales, particularly with MI-355, and positive customer demand for large-scale deployments [60][62] Question: Lead times and customer visibility for MI products - Management confirmed long lead times for MI products, emphasizing strong supply chain preparations for upcoming ramps [81][82] Question: Gross margins and underlying drivers - Management expects gross margins to remain stable, driven by operational efficiencies and growth in higher-margin segments [86][88]

Financial Data and Key Metrics Changes - The company reported record revenue of $7.7 billion for Q2 2025, a 32% increase year over year, exceeding the midpoint of guidance [5][27] - Free cash flow reached over $1 billion, and gross margin was reported at 54% excluding an $800 million inventory write-down related to export controls [5][28] - Operating income was $897 million, representing a 12% operating margin, down from 22% a year ago due to inventory charges [28][30] Business Segment Data and Key Metrics Changes - Data Center segment revenue increased 14% year over year to $3.2 billion, driven by strong demand for EPYC processors [6][30] - Client and Gaming segment revenue surged 69% year over year to $3.6 billion, with record client CPU sales and strong demand for gaming products [19][31] - Embedded segment revenue decreased 4% year over year to $824 million, reflecting mixed demand across markets [24][32] Market Data and Key Metrics Changes - The company saw robust demand for EPYC processors in cloud and enterprise workloads, with significant adoption among hyperscalers [6][8] - The gaming market experienced a 73% year-over-year revenue increase, driven by strong demand for Radeon GPUs and semi-custom products [21][31] - The embedded market showed gradual recovery, with expectations for growth in test and measurement, communications, and aerospace sectors [24][25] Company Strategy and Development Direction - The company is focused on expanding its AI capabilities, with significant investments in the MI350 and upcoming MI400 series accelerators [12][26] - Strategic partnerships, such as the collaboration with Humane for AI infrastructure, highlight the company's commitment to sovereign AI initiatives [12][54] - The company aims to capitalize on the growing demand for high-performance computing across all markets, positioning itself for long-term revenue growth [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the server CPU business, driven by durable demand for cloud and on-premise compute [10][26] - The company anticipates a strong ramp in MI350 series GPU production, with expectations for year-over-year revenue growth in the third quarter [10][62] - Management acknowledged challenges from U.S. export controls but remains confident in the recovery and growth potential in the Chinese market once licenses are approved [18][47] Other Important Information - The company generated $1.5 billion in cash from operating activities, with a total of $5.9 billion in cash and short-term investments at the end of the quarter [33][34] - The company has a share repurchase program with $9.5 billion remaining, reflecting its commitment to returning value to shareholders [34] Q&A Session Summary Question: Client business performance and outlook - Management noted strong performance in the client business, with expectations for continued growth, albeit at a slightly lower rate than the first half of the year [40][44] Question: China market and MI308 shipments - Management is optimistic about resuming MI308 shipments to China once licenses are approved, with inventory primarily in work-in-process rather than finished goods [46][48] Question: Sovereign opportunities and growth potential - Management highlighted the additive nature of sovereign opportunities, particularly with the MI355 and MI400 series, and emphasized the importance of regulatory processes [51][55] Question: Data center GPU ramp and revenue expectations - Management confirmed a strong ramp for MI355, with positive customer demand and expectations for year-over-year growth in the third quarter [60][62] Question: Developer cloud and revenue impact - The developer cloud aims to facilitate easier access to AMD GPUs for developers, though it is not expected to significantly impact revenue in the near term [66] Question: Gross margins and product mix - Management indicated that despite the ramp of MI products, operational efficiencies and a strong mix from the gaming and client segments are expected to maintain gross margins [84][86]

Summary of AMD's 2025 First Quarter Financial Results Conference Call Company Overview - **Company**: Advanced Micro Devices, Inc. (AMD) - **Event**: 2025 First Quarter Financial Results Conference Call - **Key Participants**: Dr. Lisa Hsu (CEO), Gene Hu (CFO) Core Industry Insights - **Industry**: Semiconductor and AI Accelerators - **Market Dynamics**: The company is navigating evolving dynamics related to tariffs and regulatory environments, which are impacting growth but are being offset by strong product demand and market share gains. Financial Performance Highlights - **Revenue**: First quarter revenue increased by 36% year-over-year to **$7.4 billion** [2][12] - **Earnings Per Share (EPS)**: Diluted EPS rose by 55% year-over-year to **$0.96** [12] - **Gross Margin**: Expanded to **54%**, up 140 basis points from the previous year [12] - **Net Income**: Increased by 55% due to a higher percentage of data center product sales and a richer Ryzen processor mix [2] Segment Performance Data Center Segment - **Revenue Growth**: Increased by 57% year-over-year to **$3.7 billion** [12] - **Market Share**: Gained server CPU share driven by the ramp of the 5th Gen EPYC processors [2] - **Hyperscaler Demand**: Strong demand from cloud providers for EPYC deployments [2][3] - **Enterprise Adoption**: Epic CPU sales grew significantly, with more than 450 EPYC-based platforms deployed [4] Client and Gaming Segment - **Revenue Growth**: Increased by 28% year-over-year to **$2.9 billion** [12] - **Client Revenue**: Grew by 68% year-over-year, driven by high-end Ryzen processors [12][13] - **Gaming Revenue**: Decreased by 30% year-over-year, but demand for new Radeon graphics cards remains strong [9] Embedded Segment - **Revenue**: Reported at **$823 million**, down 3% year-over-year [12] - **Market Recovery**: Gradual recovery expected, particularly in aerospace and defense sectors [12] Product Developments and Innovations - **AI Accelerators**: Strong demand for Instinct AI Accelerators, with significant customer engagements in generative AI workloads [5][6] - **New Product Launches**: Introduction of the Ryzen 9950 X3D processor and the MI350 series accelerators expected to drive future growth [8][7] - **Acquisition of ZT Systems**: Completed to enhance systems design capabilities and accelerate data center GPU and systems roadmaps [11] Strategic Outlook - **2025 Guidance**: Despite headwinds from export controls, AMD expects strong double-digit revenue growth in 2025, driven by share gains in CPUs and GPUs [11][14] - **Investment in Growth**: Plans to expand investments in product and technology roadmaps, go-to-market initiatives, and AI software solutions [11] - **Market Positioning**: AMD aims to differentiate itself through a robust product portfolio that combines leadership compute and AI capabilities [11] Risks and Considerations - **Regulatory Environment**: New export license requirements for shipments to China could impact revenue by approximately **$1.5 billion** for the full year [14] - **Inventory Management**: Increased inventory levels to support strong client and server ramp, with a focus on managing supply chain dynamics [19] Conclusion - AMD's strong first quarter results reflect robust demand across its product segments, particularly in data centers and client products. The company is well-positioned for continued growth in 2025, despite facing regulatory challenges and market uncertainties. The strategic focus on AI and high-performance computing is expected to drive future opportunities.

Core Viewpoint - Intel is rapidly losing its dominance in the server CPU market to AMD and ARM-based solutions, with predictions indicating that by 2027, AMD and Intel's market shares may be nearly equal [1][2]. Group 1: Market Share Dynamics - As of June 2025, AMD holds approximately 33% of the server CPU market, while Intel's share has decreased to around 62%, a significant change from 2017 when Intel dominated the market [1]. - AMD's market share has surged from about 10% in 2020 to over 20% in 2021 and 2022, with projections suggesting it will reach 36% by the end of 2025, while Intel's share is expected to drop to around 55% [2]. - By 2027, AMD's market share could reach 40%, with Intel potentially falling below the symbolic 50% threshold, and ARM processors may grow to capture 10% to 12% of the market [2]. Group 2: Competitive Landscape - AMD's success is attributed to its Zen architecture and a strong product roadmap, which enhances its competitive edge, while Intel's recent efforts, including the Xeon 6 series, have not positively impacted market data [3]. - The growth of ARM-based server processors, although currently below 10%, is also notable as they gradually gain market share [2].