AMD Reports 32% Revenue Growth to $7.685 Billion in Q2 2025

Advanced Micro Devices, Inc. (AMD) reported significant financial performance for the second quarter of 2025, with net revenue reaching $7.685 billion, a 32% increase from $5.835 billion in the same period last year. For the first half of 2025, revenue totaled $15.123 billion, up from $11.308 billion in the prior year. The company’s net income for the quarter was $872 million, compared to $265 million in the second quarter of 2024, largely due to a substantial income tax benefit resulting from the release of uncertain tax positions. However, the gross margin decreased to 40% from 49% year-over-year, primarily impacted by approximately $800 million in inventory charges related to U.S. government export controls on certain products.

In terms of operational changes, AMD completed the acquisition of ZT Systems on March 31, 2025, for a total consideration of $4.4 billion, which is expected to enhance its capabilities in delivering AI solutions. The company also announced plans to divest ZT Systems' manufacturing business, which is classified as held for sale, while retaining certain intellectual property and employees. This strategic move is anticipated to streamline AMD's focus on AI infrastructure. Additionally, AMD's board approved a new $6 billion share repurchase program, increasing the total repurchase authority to $14 billion.

AMD's Client and Gaming segment saw a notable revenue increase of 69% year-over-year, driven by strong demand for the latest AMD Ryzen processors and higher semi-custom sales. The Data Center segment also experienced a 14% revenue increase, primarily due to growth in AMD EPYC CPU sales. However, the Embedded segment reported a 4% decline in revenue, reflecting mixed end-market demand. The company’s total operating loss for the quarter was $134 million, a decrease from an operating income of $269 million in the prior year, attributed to lower gross margins and increased operating expenses.

As of June 28, 2025, AMD's cash, cash equivalents, and short-term investments stood at $5.9 billion, up from $5.1 billion at the end of 2024. The company generated $2.4 billion in cash from operating activities during the first half of 2025, compared to $1.1 billion in the same period last year. The increase in cash flow was driven by higher net income and improved collections from customers. AMD's total liabilities increased to $15.1 billion from $11.0 billion, largely due to the issuance of new debt to finance the ZT Systems acquisition.

Looking ahead, AMD anticipates continued growth in its core segments, particularly in AI and data center solutions, while managing the challenges posed by market conditions and product transitions. The company expects international sales to remain a significant portion of its revenue, and it plans to leverage its cash reserves and credit facilities to support ongoing operations and strategic initiatives.