AMD Eyes Strong Growth in 2025 Despite Regulatory and Economic Challenges
Advanced Micro Devices Inc. (AMD) remains confident in its growth prospects for 2025, despite facing a complex macroeconomic landscape and tighter U.S. export controls on sales to China.
Speaking during the company’s fiscal first-quarter earnings call, CEO Lisa Su expressed optimism that AMD’s expanding product lineup—especially its AI and data center offerings—will more than offset the impact of regulatory headwinds and global economic uncertainties.
Su pointed to continued market share gains driven by the company’s next-generation Zen 5 Epyc and Ryzen CPUs, as well as its Radeon GPUs. She also highlighted AMD’s plans to ramp up production of its Instinct MI350 accelerators in the second half of 2025. “We view the current environment as a strategic opportunity to further differentiate AMD,” Su said, citing the company’s leadership in compute and AI technologies across a broad range of end markets, including data centers, edge computing, PCs, and embedded devices.
AMD reported first-quarter revenue of $7.4 billion—a 36% increase year over year and ahead of analysts’ expectations of $7.1 billion. Adjusted earnings came in at 96 cents per share, topping estimates of 94 cents. Shares rose 1.8% in after-hours trading following the results, though the stock is still down more than 18% year to date.
The company’s data-center segment led the quarter with $3.7 billion in revenue, beating Wall Street’s forecast of $3.5 billion and marking a 57% year-over-year increase. AMD attributed this surge to strong demand for its Epyc CPUs and Instinct GPUs.
“We delivered an outstanding start to 2025,” Su said, adding that it was the fourth consecutive quarter of accelerating year-over-year growth.
Looking ahead, AMD set second-quarter revenue guidance at $7.4 billion, plus or minus $300 million—above analysts’ projections of $7.2 billion. However, the company expects gross margins of around 43% for the June quarter, factoring in $800 million in charges tied to the new export control requirements for sales of its MI308X chips to China.
In other segments, AMD’s client revenue jumped 68% year over year to $2.3 billion on strong Ryzen demand, while its gaming segment fell 30% to $647 million, mainly due to lower semicustom product sales.
