Q1 2025 Advanced Micro Devices Inc Earnings Call Transcript
Key Points
- Advanced Micro Devices Inc (AMD) reported a 36% year-over-year increase in first-quarter revenue, reaching $7.4 billion, driven by strong growth in data center and client segments.
- The company achieved a 55% increase in net income, supported by a higher percentage of data center product sales and a richer Ryzen processor mix.
- Data center segment revenue grew by 57% year over year, with significant contributions from EPYC CPU and Instinct AI accelerator sales.
- AMD's client revenue increased by 68% year over year, marking the fifth consecutive quarter of revenue share gains, driven by high-end Ryzen processors.
- The company expanded its gross margin for the fifth straight quarter, reaching 54%, up 140 basis points from the previous year.
- Gaming revenue decreased by 30% year over year, primarily due to lower semi-custom sales despite higher Radeon Graphics sales.
- Embedded segment revenue declined by 3% year over year, with a gradual recovery expected in the second half of 2025.
- The new export license requirement for MI308 shipments to China is expected to result in a $1.5 billion revenue reduction for the full year 2025.
- AMD's second-quarter guidance includes an estimated $700 million revenue reduction due to the new export license requirement, impacting data center segment revenue.
- Operating expenses increased by 28% year over year, as AMD continues to invest in go-to-market activities and R&D.
Greetings and welcome to the AMD first-quarter 2025 conference call. (Operator Instructions) And as a reminder, this conference is being recorded.
It is now my pleasure to introduce to you Matt Ramsay, Vice President, Financial Strategy and Investor Relations. Thank you, sir. You may begin.
Thank you and welcome to AMD 2025 first quarter financial results conference call. By now, you should have had the opportunity to review a copy of our earnings press release in the accompanying slides. If you have not had the chance to review these materials, they can be found on the Investor Relations portion of amd.com.
We will refer primarily to non-GAAP financial measures during today's call. The full non-GAAP to GAAP reconciliations are available in today's press release and the slides posted on our website.
Participants on today's conference call are Dr. Lisa Su, our Chair and Chief Executive Officer; and Jean Hu, Executive Vice President,
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