Semiconductor manufacturer AMD has reported strong financial results for the second quarter of 2025, reaching a record $7.7 billion. This represents a 32% increase compared to the same period last year. However, results were impacted by US export restrictions on AI products, resulting in significant write-downs and an operating loss. Net profit rose to $872 million.
The export restrictions on AMD Instinct MI308 datacenter GPUs to China resulted in approximately $800 million in inventory and related costs. Excluding these costs, the company’s gross margin would have been significantly higher.
Nevertheless, AMD saw strong performance in its segments. Revenue from client and gaming products increased 69% to $3.6 billion, driven by strong demand for Ryzen processors and Radeon GPUs. The data center segment grew 14% to $3.2 billion, primarily driven by strong demand for AMD EPYC processors more than offsetting headwinds impacting AMD Instinct MI308 shipments to China.
CEO Lisa Su expressed optimism about the second half of the year, “We delivered strong revenue growth in the second quarter led by record server and PC processor sales,” said Dr. Lisa Su, AMD Chair and CEO. “We are seeing robust demand across our computing and AI product portfolio and are well positioned to deliver significant growth in the second half of the year, driven by the ramp of our AMD Instinct MI350 series accelerators and ongoing EPYC and Ryzen processor share gains.”
