AMD Posts Record Revenue in Q2 2025 Amid Strong CPU Sales
Highlights
- Revenue: $7.7 billion (+32% YoY)
- Free cash flow: Over $1 billion
- Data Center segment revenue: $3.2 billion (+14% YoY)
- Client and Gaming segment revenue: $3.6 billion (+69% YoY)
- Gaming revenue: $1.1 billion (+73% YoY)
- Operating income: $897 million
- Gross margin: 43% (down from 53% YoY due to $800M inventory write-down)
AMD showcased a remarkable performance for the second quarter of 2025, demonstrating robust growth and an empowered market position, especially within its CPU divisions. Benefiting from soaring demand for its EPYC and Ryzen processors, AMD reported record revenue of $7.7 billion, marking an impressive 32% increase compared to the same period last year.
Data Center Uplifts
The Data Center segment stood out with a 14% year-over-year revenue increase, totaling $3.2 billion. This growth was largely fueled by robust demand for EPYC processors, which are increasingly deployed in cloud and enterprise environments to support demanding AI and computing workloads. With notable uptake from global players to power mission-critical infrastructure, AMD's EPYC processor adoption continues to capture market share.
Client and Gaming Surge
The Client and Gaming segment experienced a revenue surge of 69% year-over-year, reaching $3.6 billion. The Gaming sub-segment alone increased by 73%, driven by strong demand for gaming GPUs and semi-custom console SoCs. Desktop CPU sales hit record highs, thanks to the proliferation of Ryzen processors, which dominate the best-selling lists at key global retailers.
Financial Resilience Amid Inventory Challenge
Despite the high-intensity growth across segments, AMD's gross margin fell to 43%, down from 53% a year earlier, primarily due to an $800 million inventory write-down linked to U.S. export controls affecting MI308 sales to China. The write-down impacted the company's otherwise robust operating income figure, which stood at $897 million. Excluding this charge, non-GAAP gross margin would have been a healthier 54%.
AMD's strategic investments in research and development underscore its commitment to riding the AI wave. The company reported growth in free cash flow, surpassing $1 billion for the quarter, and fortified its competitive edge across multiple markets, signaling a strong financial momentum into the second half of the year.