AMD Reports Q2 Earnings, Q3 Outlook Exceeds Expectations Amid AI Sales Boost
ByAinvest
Tuesday, Aug 5, 2025 4:24 pm ET1min read
AMD--
Key Highlights:
- Revenue: AMD reported $7.6 billion in revenue, surpassing Wall Street's expectations of $7.4 billion [1].
- EPS: The company's adjusted EPS was $0.48, missing the $0.49 consensus estimate [1].
- 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 Wall Street's expectations [1].
- Client Business: The Client business generated $3.6 billion in revenue, significantly exceeding the anticipated $2.5 billion [1].
Impact of Export Controls:
The report highlighted the impact of the Trump administration's ban on the sale of AMD's MI308 AI chips to China. This ban resulted in an $800 million impact for AMD. However, the recent reversal of the ban should help mitigate these losses in future quarters [1].
New Product Launches:
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].
Future Outlook:
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://finance.yahoo.com/news/amd-to-report-q2-earnings-as-wall-street-looks-to-ai-pc-sales-growth-184349343.html
[2] https://www.stocktitan.net/news/AMD/amd-reports-second-quarter-2025-financial-5g90pseu2cgu.html
NVDA--
AMD reported Q2 results, missing on adjusted EPS but beating revenue expectations. The company provided better-than-expected Q3 guidance of $8.4-$9 billion. AMD's Data Center segment revenue reached $3.2 billion, meeting expectations, while the Client business generated $3.6 billion. The stock was flat following the report.
Advanced Micro Devices (AMD) reported its second quarter (Q2) financial results on Tuesday, July 02, 2025. The company's adjusted earnings per share (EPS) fell short of analyst expectations, but revenue exceeded forecasts. AMD's stock was flat following the announcement.Key Highlights:
- Revenue: AMD reported $7.6 billion in revenue, surpassing Wall Street's expectations of $7.4 billion [1].
- EPS: The company's adjusted EPS was $0.48, missing the $0.49 consensus estimate [1].
- 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 Wall Street's expectations [1].
- Client Business: The Client business generated $3.6 billion in revenue, significantly exceeding the anticipated $2.5 billion [1].
Impact of Export Controls:
The report highlighted the impact of the Trump administration's ban on the sale of AMD's MI308 AI chips to China. This ban resulted in an $800 million impact for AMD. However, the recent reversal of the ban should help mitigate these losses in future quarters [1].
New Product Launches:
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].
Future Outlook:
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://finance.yahoo.com/news/amd-to-report-q2-earnings-as-wall-street-looks-to-ai-pc-sales-growth-184349343.html
[2] https://www.stocktitan.net/news/AMD/amd-reports-second-quarter-2025-financial-5g90pseu2cgu.html
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