AMD earnings report Q1 2025

Lisa Su, the CEO of AMD, made an appearance at the Artificial Intelligence Action Summit held at the Grand Palais in Paris on Feb. 10, 2025.

AMD reported first fiscal-quarter earnings that exceeded expectations and provided a robust forecast for current-quarter revenue. The company’s shares initially rose by 4% in extended trading but later dropped to less than 1% after discussions regarding AI chip export controls.

In the first quarter, AMD outperformed LSEG expectations with earnings per share of 96 cents adjusted compared to the expected 94 cents, and revenue of $7.44 billion versus the anticipated $7.13 billion.

For the upcoming quarter, AMD anticipates sales of around $7.4 billion with a gross margin of 43%, while Wall Street estimates earnings of 86 cents adjusted on $7.25 billion in sales.

Despite facing challenges related to regulations on advanced AI chip exports, AMD’s CEO Lisa Su expressed confidence in the company’s performance. The export controls led to an expected $800 million in costs and an estimated $700 million in lost revenue during the current quarter. Su also mentioned difficulties related to tariffs.

AMD reported a net income of $709 million, or 44 cents per diluted share, a significant increase from the year-earlier period. The company’s revenue grew by 36% annually.

As the second-place server central processing unit vendor behind Intel, AMD’s Epyc line of processors has been gaining market share. The company also competes closely with Nvidia in the “big GPUs” sector, generating $5 billion in AI GPU sales in fiscal 2024.

AMD’s data center segment, which includes Epyc processors and Instinct GPUs, saw sales of $3.7 billion, surpassing estimates. Sales in this segment increased by 57% annually due to demand for both products.

In the client and gaming segment, AMD experienced a 28% annual increase to $2.9 billion. Sales for laptop and PC chips surged by 68% year over year, driven by strong demand for Zen 5 chips released the previous summer. However, gaming sales declined by 30%.

The company’s embedded segment, primarily from the Xilinx acquisition in 2022, declined by 3% annually to $823 million.

Overall, AMD continues to expand its customer engagements and drive demand in the AI sector with breakthroughs in large-scale AI models. Su emphasized the company’s leadership product portfolio and its role in training AI models.

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