AMD Reports $709 Million Net Income and 36% Revenue Growth in Latest Quarter

Advanced Micro Devices, Inc. (AMD) reported significant financial growth in its latest quarterly results, with net income reaching $709 million for the three months ended March 29, 2025, compared to $123 million in the same period last year. This represents a substantial increase in profitability, driven by a 36% rise in net revenue, which totaled $7.4 billion, up from $5.5 billion in the prior year. The company's gross margin also improved to 50%, up from 47% a year earlier, reflecting a favorable product mix and increased sales in its Data Center segment.

The Data Center segment was a key contributor to AMD's financial performance, with revenue soaring 57% to $3.7 billion, primarily due to strong demand for AMD EPYC CPUs and AMD Instinct GPUs. The Client and Gaming segment also saw a notable increase, with revenue rising 28% to $2.9 billion, driven by a 68% increase in Client revenue, largely attributed to the popularity of the latest AMD Ryzen processors. However, Gaming revenue declined by 30% due to decreased semi-custom revenue. The Embedded segment experienced a slight decrease in revenue, reflecting mixed demand in end markets.

In terms of operational developments, AMD completed the acquisition of ZT Group Int’l Inc. (ZT Systems) on March 31, 2025, for $3.375 billion in cash and stock, aimed at enhancing its AI infrastructure capabilities. The company is also actively seeking a strategic partner to acquire ZT Systems' manufacturing business. Additionally, AMD issued $1.5 billion in senior notes to help fund this acquisition, reflecting its ongoing commitment to strategic growth and investment in advanced technologies.

As of March 29, 2025, AMD's cash, cash equivalents, and short-term investments totaled $7.3 billion, an increase from $5.1 billion at the end of the previous fiscal year. The company generated $939 million in cash from operating activities during the quarter, while returning $749 million to shareholders through stock repurchases. AMD's employee headcount remained stable, with ongoing investments in talent to support its growth strategy, particularly in AI and advanced computing technologies.

Looking ahead, AMD anticipates continued growth driven by demand for its AI and data center products, despite potential challenges from market conditions and export restrictions affecting certain semiconductor products. The company expects international sales to remain a significant portion of its revenue, and it is focused on navigating the evolving regulatory landscape while maintaining its competitive position in the semiconductor industry.