Advanced Micro Devices 2025 Q3 Earnings Record Revenue and 61% Net Income Growth

Advanced Micro Devices (AMD) delivered a strong performance in Q3 2025, surpassing Wall Street expectations with a 35.6% revenue increase and 61.2% net income growth. The company raised its full-year guidance, signaling confidence in sustained demand for its AI and high-performance computing solutions.

Revenue

AMD’s Q3 revenue surged to $9.25 billion, driven by robust demand across all segments. The Data Center division led with $4.34 billion in revenue, fueled by 5th Gen EPYC processors and MI350 GPUs. Client and Gaming revenue reached $4.05 billion, with Client sales climbing to $2.75 billion and Gaming revenue soaring 181% to $1.30 billion due to increased semi-custom console production. The Embedded segment contributed $857 million, while the “All Other” category remained flat at $0.

Earnings/Net Income

Earnings per share (EPS) rose 58.3% to $0.76, and net income reached $1.24 billion, reflecting a 61.2% year-over-year increase. This underscores AMD’s profitability expansion amid strategic investments in AI and high-performance computing.

Price Action

Post-earnings, AMD’s stock fluctuated, gaining 5.38% in a single trading day but retreating 3.03% over the following week. Month-to-date, shares surged 25.83%, reflecting mixed investor sentiment despite strong results.

Post-Earnings Price Action Review

Despite exceeding earnings estimates, AMD’s stock dipped 4% in pre-market trading as investors digested the company’s Q4 guidance. While revenue expectations of $9.6 billion aligned with analyst forecasts, concerns about short-term GPU growth and valuation pressures tempered enthusiasm. The broader tech sector’s volatility, including fears of an AI bubble, also impacted sentiment. However, analysts noted AMD’s fundamentals remain strong, citing its AI data center expansion and the OpenAI partnership as long-term catalysts.

CEO Commentary

Dr. Lisa Su highlighted “record revenue and profitability” driven by demand for EPYC, Ryzen, and Instinct AI accelerators. She emphasized AMD’s “clear step up in growth trajectory” and strategic investments in AI and high-performance computing as key drivers for future success.

Guidance

AMD projected Q4 2025 revenue of $9.6 billion (±$300 million), representing 25% YoY growth. Non-GAAP gross margin is expected at ~54.5%. The guidance excludes MI308 GPU shipments to China and reflects confidence in sustained AI and PC market demand.

Additional News

1. OpenAI Partnership: AMD secured a deal with OpenAI, which could see the AI startup take a 10% stake in AMD. OpenAI will deploy 6 gigawatts of AMD’s Instinct GPUs over multiple years.

2. ZT Systems Acquisition: Morgan Stanley highlighted the ZT Systems acquisition as a potential catalyst for the MI450 rack-scale product line, offering clarity on AMD’s AI infrastructure strategy.

3. MI450 Roadmap: The company plans to launch MI450 AI accelerators in 2026, aiming to bolster its position in the AI market despite current growth lagging behind peers like NVIDIA.

AMD’s Q3 results underscore its leadership in AI and data center markets, with strategic partnerships and product launches positioning it for long-term growth. Investors will closely watch Q4 execution and the impact of its AI roadmap on market share.