AMD Q2 Earnings: Revenue Beats Expectations, Data Center Growth Slows, Shares Dip 4%

AMD's Q2 FY25 earnings report shows a 4% dip in stock price as data center revenue growth slows. The company reported adjusted EPS of $0.48, matching consensus, and beat expectations with revenue of $3.85bn. However, data center revenue growth slowed, impacting AMD's stock price.

Advanced Micro Devices (AMD) reported its second-quarter fiscal year 2025 earnings on Tuesday, with the stock price dipping by 4% post-market release. The company's adjusted earnings per share (EPS) of $0.48 matched the consensus estimate, while revenue surged to $3.85 billion, representing a 31.7% year-over-year increase [4].

Despite the strong revenue growth, the company's stock price declined due to a slowdown in data center revenue growth. Data center revenue for the quarter ended June 28, 2025, was $3.24 billion, a 14.3% year-over-year increase, but this was below the average analyst estimate of $3.31 billion [4]. This discrepancy contributed to the stock price dip, as investors had expected a more significant increase in data center revenues.

AMD's client segment revenue grew by 67.5% year-over-year to $2.5 billion, while gaming revenue surged by 73.2% to $1.12 billion. The embedded segment, however, saw a 4.3% year-over-year decline to $824 million [4]. The company's expanding portfolio and rich partner base have been key drivers of growth in the client and gaming segments [2].

Overall, AMD's second-quarter performance highlights the company's strong revenue growth across multiple segments. However, the slowdown in data center revenue growth and the stock price dip underscore the importance of meeting analyst expectations and the potential impact on investor sentiment.

References:
[1] https://finance.yahoo.com/news/live/earnings-live-palantir-stock-pops-pfizer-beats-caterpillar-warns-of-tariff-impact-122419599.html
[2] https://www.tradingview.com/news/zacks:a7035000d094b:0-will-amd-stock-climb-on-strong-data-center-revenues-in-q2-earnings/
[3] https://finance.yahoo.com/news/live/earnings-live-amd-rivian-lucid-snap-and-super-micro-computer-stocks-fall-after-quarterly-results-202947161.html
[4] https://www.nasdaq.com/articles/compared-estimates-advanced-micro-amd-q2-earnings-look-key-metrics
[5] https://seekingalpha.com/news/4478812-amd-dips-as-q2-earnings-match-estimate-and-revenue-surges-32