AMD slightly beat projections for both revenue and net income, with sales down slightly from the previous quarter but up considerably year over year.
AMD announced revenue for the first quarter of 2025 on Tuesday, reporting revenue of $7.44 billion, up 35.9% over the same period last year. GAAP EPS came in at $0.96, compared to $0.62 in the year-ago quarter. Analyst consensus was $7.12 billion in revenue and EPS of $0.93.
Given that the first calendar quarter is seasonally slow, the $7.44 billion in revenue is quite a good showing. The revenue was up 36% from the same quarter in 2024. Half of that revenue was Data Center sales, a combination of Epyc CPUs and Instinct GPUs.
The $709 million in GAAP net income was up 476% over Q1’24’s $123 million. On a non-GAAP basis, net income was $1.5 billion, up 55% over the $1.0 billion year over year.
“Despite the dynamic macro and regulatory environment, our first-quarter results and second-quarter outlook highlight the strength of our differentiated product portfolio and consistent execution, positioning us well for strong growth in 2025,” Lisa Su, AMD chair and CEO, said in a statement.
AMD’s balance sheet is remarkably healthy. From Q4’24 to now, in just one quarter, cash and equivalents went from $3.7 billion to $6 billion. Total current assets are $21 billion, while total current liabilities are $7 billion, making for a very healthy current ratio of 3:1—pretty good for a hardware company where margins are often razor-thin.
“Our strong first-quarter results and second-quarter outlook reflect the momentum we are building across our business while we face some headwinds from the dynamic macro and regulatory environments, including the recently announced export controls for Instinct MI308X shipments to China. We believe they are more than offset by the powerful tailwinds from our leadership product portfolio. Against this backdrop, we remain confident we can deliver strong double-digit percentage revenue growth in 2025,” Su told the analysts.
All three segments—Data Center, Compute and Gaming, and Embedded—were down slightly from the previous quarter but up quite a bit year over year.
The Data Center segment’s $3.7 billion in revenue accounted for 49% of total revenue for the quarter, down from 50% in the previous quarter but up 57.5% from the $2.33 billion reported in Q1’24.
“We passed key milestones in April to begin manufacturing fifth-gen Epyc at TSMC’s new Arizona fab, with first production shipments expected in the second half of 2025,” said Su. “Longer term, we announced that our next-gen Epyc Venice processors are the lead HPC products for TSMC’s 2 nm process node. Venice silicon is in our labs and performing well with bring up and validation, progressing to plan to support a 2026 launch.”
On the Instinct side of the business, AMD began sampling its next-generation MI350 series with multiple customers in the first quarter and remains on track to begin accelerated production by midyear.
MI350 is based on the CDNA 4 architecture, which the company designed to deliver performance across a wide range of AI workloads, increasing memory capacity bandwidth 1.5x, adding support for new data types, and improving network efficiency to deliver 35x higher throughput and performance compared to MI300X.
“Customer interest in the MI350 series is very strong, setting the stage for broad deployment in the second half of this year,” said Su.
AMD has shuffled its accounting, lumping Compute (client CPUs) with Gaming (GPUs). Interestingly, it still breaks out the revenue of the two categories individually but reports operating income as a combination of Compute and Gaming.
Client and Gaming segment revenue in the quarter was $2.9 billion, up 28% year over year. Client revenue was $2.3 billion, up 68% year over year primarily driven by strong demand for the latest Zen 5 AMD Ryzen processors and a richer mix.
Highlights for the quarter include the launch of the 16-core Ryzen 9950X3D processor expanding, OEM partners launching the first notebooks powered by new high-end Ryzen AI Max+ and first mainstream Ryzen AI 7 and 5 300-series processors designed to bring AI to the desktop.
Gaming revenue was $647 million, down -30% year over year primarily due to a decrease in semi-custom revenue. The company attributed the decline to a fall in demand for custom silicon from console makers, but added console channel inventories have normalized and demand signals have strengthened.
The company launched Radeon 9070 series to strong demand for the new RDNA 4 architecture, and it introduced FSR 4, its machine learning-based upscaling and frame-generation technology.
The Embedded segment revenue in the quarter was $823 million, down -3% year over year, as demand in end markets remained mixed. Nevertheless, it was a busy quarter for Embedded products. It launched the Epyc Embedded 9005-series processors used in IBM’s latest storage scale system and the latest-generation Cisco high-end firewalls.
The company completed initial shipments of Spartan UltraScale+ FPGAs and second-generation Versal AI Edge processors. AWS launched new FPGA-accelerated instances powered by Epyc and AMD Virtex optimized for data and compute-intensive workloads. Lastly, it launched the Vitis software suite with expanded support for the latest AI models.
Current outlook
For the second quarter of 2025, AMD expects revenue to be approximately $7.4 billion, plus or minus $300 million. Non-GAAP gross margin is estimated to be 43%, inclusive of approximately $800 million in charges for inventory and related reserves due to the new export controls, as previously disclosed in AMD’s Current Report on Form 8-K filed on April 16, 2025. Excluding this charge, non-GAAP gross margin would be approximately 54%.
For a more comprehensive analysis, see our story here.
LIKE WHAT YOU’RE READING? INTRODUCE US TO YOUR FRIENDS AND COLLEAGUES.