AMD just reported its first-quarter 2025 earnings, and the numbers are better than expected. Despite an $800 million hit from export restrictions to China, the chipmaker managed to pull off a solid quarter, thanks to growing demand in AI and data centers.
Revenue came in at $7.4 billion, beating Wall Street’s forecast of $7.1 billion. AMD also delivered earnings of $0.96 per share, slightly above the expected $0.94.
Gross margin held steady at 50%, with net income reaching $709 million. That’s a win, especially with the China-related charge weighing on results.
The company’s data center segment continues to shine, driven by demand for EPYC processors and AI accelerators. AMD is also betting big on its Instinct MI300 series—hardware that’s key to its push into AI workloads.
Meanwhile, the client PC segment looks like it’s starting to recover. AMD expects things to pick up in the second half of the year. Gaming, however, saw a decline, mostly because major partners are shifting toward next-gen console cycles.
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AMD shares jumped as much as 7% in after-hours trading after the earnings release. Investors are encouraged by the results and the company’s guidance for the next quarter.
For Q2 2025, AMD expects revenue between $7.2 billion and $7.6 billion. That midpoint ($7.4B) is once again above analyst expectations, which shows confidence in the company’s product roadmap and market demand.
Despite external pressures, especially from China-related export controls, AMD is proving it can adapt. Its AI strategy, bolstered by the Xilinx acquisition and a growing software stack, is gaining traction.
With new products on the way and momentum building, AMD looks ready to stay competitive through the rest of the year.
