Advanced Micro Devices, Inc. (AMD) announced a solid start to 2025, with its Q1 financial results highlighting notable revenue increase from the previous year, driven mainly by the company’s strengths in the client, data centre, and AI accelerator categories. AMD is a semiconductor company which designs and develops central processing units (CPUs), graphics processing units (GPUs), and other high-performance computing solutions.
The business continues to make significant progress with its AI-focused approach, especially with its Instinct GPU and EPYC CPU product lines. This upward trend, however, is placed against a challenging operating environment that is marked by fierce competition and shifting geopolitical circumstances, most notably U.S. export restrictions and possible tariffs that could affect its operations in China.
AMD kicked off 2025 with strong momentum. Their first-quarter sales of $7.438 billion, a 36% increase over the previous year, was considered to be impressive. Additionally, profits increased as net income reached $709 million, up 476% from the previous year, mostly as a result of the success of their normal computer processors and data centre goods (servers and AI chips).
“We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter, driven by strength in our core businesses and expanding data center and AI momentum,” stated Dr. Lisa Su, AMD chair and CEO. She further commented, “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.”
With sales jumping a staggering 57% to $3.7 billion, the data centre side of things was a significant winner. Both, their Instinct GPUs and EPYC CPUs, are selling nicely. Due to the demand for the “Zen 5” Ryzen CPUs, the PC processor sector also had a significant uptick, rising 68% to $2.3 billion.
Jean Hu, CFO and Treasurer, emphasized the company’s growing scale. He noted, “We grew first quarter revenue 36% year-over-year and delivered significant earnings leverage as our business gains scale.”
However, not all segments saw growth. Revenue from gaming products declined sharply by 30%, largely due to waning demand for chips used in existing game consoles, which have been on the market for some time. Meanwhile, the embedded chip division experienced a modest 3% dip, indicating uneven demand across its key markets.
