AMD Q2 Earnings: Revenue Up, Q3 Outlook Set

Advanced Micro Devices (AMD) reported Q2 earnings of $0.48 per share, down from $0.64 in the same period last year, but revenue increased to $7.69B, above the estimated $7.41B. The company also forecast Q3 revenue of $8.40B-$9.00B, beating estimates. AMD's gaming revenue reached $1.1B, while embedded revenue was $824M.

Advanced Micro Devices (AMD) reported its second-quarter (Q2) earnings on August 5, 2025. The company's revenue grew year-over-year (YoY) by 27% to $7.69 billion, surpassing the estimated $7.41 billion. However, adjusted net income per share declined by 30% to $0.48, compared to $0.64 in the same period last year [1].

The company's gaming revenue reached $1.1 billion, while embedded revenue was $824 million. AMD also forecasted Q3 revenue of $8.40 billion to $9.00 billion, which exceeded analyst estimates [2].

AMD's stock has been on a significant upward trajectory, with a 46% year-to-date (YTD) surge and a 27% gain over the past year. Despite the profit decline, the stock remains a favorite among analysts, with an average price target of $156.66, implying a downside of -8.76% from the current price of $171.70 [1].

The company's performance is closely watched due to its reliance on Taiwan Semiconductor (TSM) for fabrication and the potential impact of recent tariffs on Taiwanese imports. Additionally, the lifting of the AI chip export ban to China could reopen opportunities for AMD [2].

Investors are keenly awaiting AMD's Q3 results to gauge the company's ability to sustain its growth trajectory. The company's performance in the coming quarters will be crucial in determining whether the stock remains a buy or sell.

References:
[1] https://finance.yahoo.com/news/amd-q2-earnings-loom-buy-124408014.html
[2] https://www.tradingview.com/news/gurufocus:2423931a6094b:0-what-to-expect-from-amd-q2-earnings/
[3] https://www.investopedia.com/what-analysts-think-of-amd-stock-ahead-of-earnings-q2-fy2025-update-11783465