AMD's Q1 2025: Navigating Contradictions in Data Center GPU Growth and Client Business Performance

Data center GPU revenue progression, client business growth expectations, data center GPU growth and market impact, and data center GPU growth expectations are the key contradictions discussed in AMD's latest 2025Q1 earnings call.



Revenue Growth and Segment Performance:
- Advanced Micro Devices (AMD) reported record revenue of $7.4 billion for Q1 2025, up 36% year-over-year.
- The growth was driven by a 57% increase in data center segment revenue and a 28% increase in client and gaming segment revenue, supported by strong sales of products like EPYC and Ryzen CPUs.

Data Center GPU Sales and China Export Controls:
- Data center GPU revenue increased significantly double-digit year-over-year in Q1 2025.
- However, an exclusion of $700 million in revenue due to new export license requirements for shipments to China in Q2 2025 is anticipated to impact growth.

Enterprise Adoption and Market Share:
- AMD's EPYC CPU sales grew by a large double-digit percentage year-over-year for the seventh consecutive quarter.
- This increase was driven by new public sector wins and high-volume deployments, with significant market share gains in sectors like telecom, aerospace, and manufacturing.

Client Business and ASP Growth:
- Client revenue grew 68% year-over-year, with over half driven by higher ASPs from a richer mix of high-end Ryzen processors.
- The growth was supported by strong desktop channel performance and increased demand for AI-capable processors in notebooks.