Revenue Soars 57% in Data Center Segment as AMD Expands AI Partnerships and Product Leadership
Advanced Micro Devices (AMD) delivered a strong first quarter for 2025, underscoring the company’s momentum in data center and AI markets, and its ability to navigate macroeconomic and regulatory headwinds. Revenue for the quarter rose to $7.4 billion, representing significant year-over-year growth, with strength across multiple business units.
On a GAAP basis, AMD reported a gross margin of 50%, operating income of $806 million, net income of $709 million, and earnings per share (EPS) of $0.44. On a non-GAAP basis, gross margin was 54%, operating income reached $1.8 billion, net income was $1.6 billion, and EPS came in at $0.96.
“We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter,” said AMD Chair and CEO Dr. Lisa Su. “Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution positioning us well for strong growth in 2025.”
Segment Highlights
AMD’s Data Center segment was the standout performer, generating $3.7 billion in revenue—a 57% year-over-year increase. The growth was largely driven by increased adoption of AMD EPYC™ CPUs and AMD Instinct™ GPUs, as AI workloads continue to proliferate across industries.
The Client and Gaming segment brought in $2.9 billion in revenue, up 28% year-over-year. Within that, client revenue rose a remarkable 68% thanks to strong demand for AMD’s latest “Zen 5” Ryzen™ processors. However, gaming revenue declined 30% to $647 million due to lower semi-custom product sales.
The Embedded segment saw a modest decline, with revenue totaling $823 million—down 3% from the same period last year, reflecting mixed end-market demand.
AI and Strategic Expansion
AMD continues to deepen its presence in AI through both organic growth and strategic acquisitions. The company recently completed its $26.6 billion acquisition of ZT Systems, aimed at bolstering its position in the $500 billion data center AI accelerator market projected for 2028.
AMD is also expanding its AI footprint through key partnerships with Core42, Dell Technologies, and G42, and continues to support leading AI models with its ROCm™ software stack. Notably, AMD GPUs now support Meta’s Llama 4 and Google’s Gemma 3 models.
In gaming and content creation, AMD launched its Radeon RX 9070 XT and RX 9070 graphics cards built on the RDNA™ 4 architecture and introduced the Ryzen 9 9950X3D, which leverages 2nd Gen 3D V-Cache™ technology for enhanced performance and efficiency.
Outlook
For Q2 2025, AMD expects revenue to remain steady at around $7.4 billion, plus or minus $300 million. The company’s non-GAAP gross margin is projected to be approximately 43%, including an $800 million inventory-related charge due to new export controls. Excluding this charge, the margin would be approximately 54%.
AMD’s continued focus on innovation, strategic acquisitions, and expanding AI capabilities positions it strongly for sustained growth throughout 2025.
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