Strong Q2 Revenue and Data Center Growth

The AMD earnings report Q2 2025 revealed adjusted earnings per share of 48 cents, matching Wall Street’s consensus, according to FactSet. Revenue hit $7.7 billion, topping analyst expectations of $7.42 billion.

Notably, the company’s data center segment revenue grew 14% year-over-year to $3.2 billion, driven by demand for high-performance computing and artificial intelligence products.

Guidance and AI Momentum

For the current quarter, AMD guided revenue to a midpoint of $8.7 billion, surpassing the Street’s forecast of $8.32 billion. CEO Lisa Su struck an optimistic tone, stating, “We are seeing robust demand across our computing and AI product portfolio and are well positioned to deliver significant growth in the second half of the year.”

Investor excitement around AI continues to play a key role in AMD’s narrative. In June, the company unveiled the Instinct MI350 series, including the MI350X and MI355X chips, aimed at challenging Nvidia’s dominance in AI infrastructure.

Stock Reaction and Market Expectations

Despite the beat on revenue and positive guidance, AMD stock dropped 5.8% to $164.20 in premarket trading Wednesday, following the company’s earnings call. Investors may have been looking for a stronger upside surprise, especially after a 73% run-up over the past three months.

Year-to-date, shares are still up 44%, reflecting enthusiasm for AI-linked growth as tech giants boost capital expenditures.

Looking Ahead: MI400 and Full-Stack Solutions

CEO Lisa Su emphasized long-term growth potential, noting that customer interest in the upcoming MI400 series, expected in 2026, is “very strong.”

In March, AMD acquired ZT Systems, enhancing its ability to deliver rack-scale AI server solutions—a space currently led by Nvidia. This strategic move positions AMD to compete across the full stack, from silicon to systems to software.

“We are in the early stages of an industry-wide AI transformation,” Su said. “It will drive a step-function increase in compute demand across all of our markets.”

Conclusion

The AMD earnings report Q2 2025 offered a solid performance on the top line, bolstered by data center strength and a promising AI roadmap. While shares dipped post-call, the long-term growth story remains intact as AMD doubles down on AI and high-performance computing infrastructure.