AMD reported record revenue of $9.25 billion for fiscal third‑quarter 2025, a 36 % year‑over‑year increase from $6.8 billion in Q3 2024 and a 20 % sequential rise from $7.7 billion in Q2 2025. The jump was driven by a 22 % rise in the Data Center segment, a 46 % increase in Client revenue, and a 181 % surge in Gaming revenue, reflecting robust demand for EPYC processors, Ryzen CPUs, and Instinct AI accelerators. The company’s ability to maintain a high‑margin mix—particularly the growth of AI‑centric products—offsets the modest price pressure seen in legacy PC GPUs.
The adjusted earnings per share of $1.20 beat consensus estimates of $1.17 by $0.03, a 2.6 % lift. The beat was largely due to disciplined cost control and the favorable product mix, which shifted revenue toward higher‑margin AI and data‑center solutions. Net income reached $1.24 billion, up from $0.92 billion in Q3 2024, while free cash flow was reported at $1.20 billion, a record that aligns with the company’s focus on investing in next‑generation AI accelerators. The free‑cash‑flow figure is consistent with the $1.53 billion reported in Q2 2025, underscoring a steady cash‑generating trend.
Segment analysis shows that the Data Center segment grew 22 % YoY, driven by strong demand for EPYC CPUs and Instinct MI350 accelerators. Client revenue rose 46 % to $2.8 billion, with Ryzen processors capturing a larger share of the PC market. Gaming revenue surged 181 % to $1.3 billion, reflecting the popularity of AMD’s Radeon GPUs in the esports and streaming sectors. These gains illustrate the company’s successful expansion into high‑growth AI and gaming markets while maintaining a solid presence in traditional PC and server segments.
For Q4 2025, AMD guided revenue of $9.3 billion to $9.9 billion, a 25 % year‑over‑year increase and a 4 % sequential lift at the midpoint. The guidance excludes any revenue from MI308 AI‑chip shipments to China, which are pending export‑control approvals. Management highlighted the ramp of the MI350 accelerator and continued demand for EPYC CPUs as key growth drivers. The non‑GAAP gross margin guidance of 54.5 % signals confidence that the high‑margin AI and data‑center mix will sustain profitability, even as the company invests heavily in research and development.
Despite the strong results, investors reacted cautiously because the Q4 guidance, while robust, fell short of the most aggressive market expectations and because broader AI‑sector valuation concerns weighed on sentiment. Analysts noted that the pace of converting large AI orders into revenue remains a focus, and that geopolitical factors—such as export controls on AI chips—could impact future sales. Management emphasized that the company remains well‑positioned to capture AI market share, citing ongoing partnerships with OpenAI and Oracle, and reiterated its commitment to cost discipline and strategic investments in high‑return verticals.
Dr. Lisa Su, AMD’s CEO, said the quarter “demonstrated the strength of our expanding compute franchise and the rapid scaling of our data‑center AI business.” CFO Jean Hu added that the record free‑cash‑flow “reflects disciplined execution and positions AMD to invest in high‑growth AI and high‑performance computing.” These statements underscore the company’s confidence in sustaining growth while navigating competitive and regulatory headwinds.
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