AInvest Newsletter
Daily stocks & crypto headlines, free to your inbox
AMD Earnings: Q2 Revenue Surges 32%, EPS Meets Estimates.
ByAinvest
Tuesday, Aug 5, 2025 4:50 pm ET1min read
AMD reported Q2 earnings of $0.48 per share, matching estimates, and revenue surged 32% to $7.68B. The company's stock dipped 4% following the release.
Advanced Micro Devices (AMD) reported its second-quarter 2025 earnings on July 2, with the company's stock dipping 4% following the release. The company reported earnings per share (EPS) of $0.48, matching analysts' estimates, and revenue surged 32% to $7.68 billion [1].AMD's strong performance was driven by robust growth in its data center and client segments, with revenues from these segments increasing by 32% and 69%, respectively. The company's data center segment generated $3.2 billion in revenue, a 14% increase from last year, while the client and gaming segment reached $3.6 billion, up 69% year-over-year [2].
However, AMD faced challenges due to U.S. government export controls, particularly affecting shipments of its MI308 GPUs to China. These restrictions resulted in $800 million in inventory charges, significantly impacting the company's profitability. Excluding these charges, AMD's non-GAAP gross margin would have been approximately 54%, as opposed to the reported 43% [2].
Looking ahead, AMD forecasts third-quarter revenue of around $8.7 billion, anticipating a 28% increase compared to the same quarter last year. The company projects a non-GAAP gross margin of approximately 54%, reflecting strong confidence in its product line and market demand [2].
Despite the challenges, AMD's strategic moves, including the intended $3 billion sale of ZT Systems' data center infrastructure manufacturing business to Sanmina, position the company for sustained growth. The company's planned launches of the Instinct MI350 Series GPUs and next-generation EPYC processors are expected to bolster its growth trajectory [2].
Investors should closely monitor AMD's earnings report and analyst reactions to assess the stock's potential for a pullback or continued growth. While AMD's Q2 earnings were strong, the stock's valuation is overextended, with a 14-week RSI value of nearly 75, suggesting a significant pullback is likely [2].
References:
[1] https://www.tradingview.com/news/stockstory:22bd71a5e094b:0-amd-amd-q2-earnings-report-preview-what-to-look-for/
[2] https://www.ainvest.com/news/amd-stock-warning-earnings-2508/
Ainvest News articles are AI-generated using advanced large language model (LLM) technology designed to analyze and synthesize publicly available data and news. While AI tools assist in producing initial drafts and insights, all AI generated content published on Ainvest is subject to comprehensive human editorial review before publication. A designated human editor reviews, verifies, and approves each article for factual accuracy, coherence, and compliance with AInvest Fintech Inc’s editorial and disclosure standards.
Despite these review procedures, the information provided may still contain inaccuracies, incomplete data, or time sensitive references due to the inherent limitations of AI generated analysis and evolving changes. The material is provided strictly for informational and educational purposes and does not constitute personalized investment, legal, or financial advice. Readers should independently verify all facts, figures, and statements before making any decision based on this content.
AInvest Fintech Inc. its affiliates, and partners accept no liability or responsibility for any direct or consequential losses arising from reliance on this content. All articles and analyses are subject to revision, update, or removal without prior notice to maintain accuracy and integrity in our publications.
Comments
No comments yet