The company banked a net income of $709 million, a staggering 2,139 per cent increase from the same quarter in 2024. Gross profit hit $3.736 billion, with margins sitting at a respectable 50 per cent. To put it into perspective, AMD now earns in a quarter what it once did in an entire year.
Dr Lisa Su, AMD chair and CEO, said: "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.”
On the consumer side, AMD’s Client and Gaming division brought in $2.9 billion. Within that, the Client segment alone pulled $2.3 billion, a 68 per cent jump thanks to demand for Ryzen AI 300-series laptop processors and the premium Ryzen 9000 X3D chips for desktops. The product mix shifted upward, with consumers favouring more expensive silicon, boosting the bottom line.
Gaming, however, was a different story. Revenues from that segment fell 30 per cent to $647 million, as AMD’s custom silicon for Microsoft’s Xbox and Sony’s PlayStation began to look long in the tooth. The slowdown in console sales, coupled with a lack of major new launches, meant the semi-custom SoC business couldn't keep pace. AMD tried to put a brave face on things, pointing to its new Radeon RX 9070 cards built on RDNA 4, but the volume just isn’t there.
Datacentre sales were the jewel in AMD’s quarterly crown, coming in at $3.7 billion which were up 57 per cent from a year earlier. EPYC’s 5th generation chips are finally breaking through with hyperscalers, and Instinct MI300 accelerators are getting traction among cloud providers and big enterprise customers. AMD namedropped deployments at Oracle, Siemens, and Core42, suggesting its AI push is starting to pay off in real-world deals.
The Embedded division, once a quiet revenue earner, dipped three per cent to $823 million. AMD said the results were uneven across different market segments. That said, it did land design wins with IBM storage systems and Cisco security appliances via its EPYC Embedded 9005 chips. It also shipped Spartan UltraScale+ FPGAs and Versal AI Edge SoCs, though sales in other embedded categories didn’t hold up as well.
But beneath the record headline lies a growing concern. AMD warned that new US export tariffs could strip as much as $1.5 billion from its annual sales in 2025. The second quarter will take an immediate hit, with an $800 million charge tied to inventory complications from the updated controls. That single event is set to slash gross margins from 54 per cent to 43 per cent, at least on paper.
Looking forward, AMD expects revenue in Q2 to hover around $7.4 billion, plus or minus $300 million. While the numbers are steady, the warning signs are plain. Trade policies are biting, and despite surging AI and server momentum, AMD is far from immune.
So while this might be a high point on the revenue chart, the rest of 2025 is shaping up to be a strategic headache—one filled with geopolitical landmines, softening consumer segments, and the usual chaos from rival Chipzilla and the fab kings over at TSMC.
