AMD Q2 Earnings: Lower Data Center Growth Due to MI308 Export Restrictions

AMD Q2 earnings report shows lower data center growth due to MI308 export restrictions. The company's stock price has nearly doubled since April 2025, outperforming the S&P 500 Index. The success of its Ryzen 9000 is highlighted as a key factor in its success.

AMD reported its second-quarter 2025 earnings, highlighting a significant 32% year-over-year increase in revenue to $7.7 billion [1]. Despite this growth, the company faced challenges due to U.S. export controls on its AMD Instinct MI308 data center GPU products, leading to an $800 million inventory charge [2]. This restriction significantly impacted AMD's data center segment, which saw lower growth compared to other divisions.

The company's stock price has nearly doubled since April 2025, outperforming the S&P 500 Index. This strong performance can be attributed to the success of AMD's Ryzen 9000 series processors, which saw record sales in the quarter [1]. The Ryzen 9000 series has been a key driver of growth, particularly in the client and gaming division, which experienced a 69% increase in revenue [1].

AMD's outlook for the third quarter 2025 remains positive, with the company expecting revenue of approximately $8.7 billion, indicating continued growth momentum [2]. However, the company's earnings were impacted by the U.S. government's export control measures, which have paused growth for its Instinct MI308 lineup. Analysts suggest that new license approvals could revive up to $1 billion in GPU revenue next year if China gets the green light [1].

Investors remain cautious, with AMD shares down nearly 4% after hours following the earnings report. The uncertainty surrounding export license approvals and the potential impact on future sales keeps investors on edge [1]. Despite these challenges, AMD's strong performance in the data center and PC chip markets highlights the ongoing boom in these sectors.

The global battle over chip supremacy is forcing companies like AMD to navigate rapid growth and shifting regulations. New export licenses could quickly revive lost sales, but in today's market, the biggest gains—and the biggest risks—can come from government policy, not just next-gen tech.

References:
[1] https://finimize.com/content/amd-reports-strong-revenue-growth-but-faces-export-hurdles
[2] https://www.quiverquant.com/news/AMD+Reports+Record+Q2+2025+Revenue+of+%247.7+Billion+Amid+Export+Control+Impacts