AMD Forecasts 28% Q3 2025 Revenue Growth Amid MI350 Ramp and Data Center Demand

AMD expects 28% revenue growth in Q3 2025, driven by the ramp of its MI350 product and strong demand in the data center segment. The company reported record Q2 2025 results, with revenue surpassing guidance due to higher EPYC and Ryzen processor sales.

Advanced Micro Devices (AMD) reported its second quarter (Q2) 2025 financial results on July 2, 2025, with revenue exceeding expectations. The company's adjusted earnings per share (EPS) fell short of analyst estimates, but revenue surpassed forecasts, reaching $7.7 billion, a 32% year-over-year increase [2].

Key highlights include:

- Revenue: AMD's revenue for Q2 2025 was $7.7 billion, surpassing Wall Street's expectations of $7.4 billion [2].
- EPS: The company's adjusted EPS was $0.48, missing the $0.49 consensus estimate [2].
- Q3 Guidance: AMD provided better-than-expected guidance for the third quarter (Q3), projecting revenue between $8.4 billion and $9 billion, compared to Wall Street's $8.3 billion estimate [1].
- Data Center Segment: Revenue from the Data Center segment reached $3.2 billion, meeting expectations [1].
- Client Business: The Client business generated $3.6 billion in revenue, significantly exceeding the anticipated $2.5 billion [1].

The report highlighted the impact of export controls, with the Trump administration's ban on the sale of AMD's MI308 AI chips to China resulting in an $800 million impact. However, the recent reversal of the ban should help mitigate these losses in future quarters [1].

AMD also announced the launch of its MI350 line of AI chips, designed to compete with Nvidia's Blackwell-powered chips. The MI350 line offers four times the AI compute performance and a 35x increase in inferencing capabilities compared to its predecessors [1].

Looking ahead, AMD expects revenue of approximately $8.7 billion for Q3 2025, representing 28% year-over-year growth and 13% sequential growth. The company also expects a non-GAAP gross margin of approximately 54% for Q3 [2].

References:
[1] https://www.ainvest.com/news/amd-reports-q2-earnings-q3-outlook-exceeds-expectations-ai-sales-boost-2508/
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-amd-q2-2025-revenue-surges-stock-dips-postearnings-93CH-4171710