Advanced Micro Devices, Inc. (AMD) has released its financial results for the third quarter of 2025, showcasing impressive growth and profitability. The company reported a record revenue of $9.2 billion, marking a 36% increase from the previous year. This growth is attributed to strong demand for its EPYC and Ryzen processors, as well as its AI accelerators. CEO Dr. Lisa Su highlighted the company's robust performance and optimistic outlook for the future, particularly in the data center and AI sectors.
Financial Highlights
AMD's financial performance for Q3 2025 revealed significant increases across several key metrics. The gross margin stood at 52%, with an operating income of $1.3 billion and a net income of $1.2 billion. When considering non-GAAP measures, the gross margin improved to 54%, with operating income reaching $2.2 billion and net income at $2 billion, translating to diluted earnings per share of $1.20. Notably, these results did not include any revenue from shipments of the AMD Instinct™ MI308 GPU products to China, which could have further influenced the figures.
Segment Performance
The revenue breakdown by segment shows the Data Center segment earning $4.3 billion, a 22% increase year-over-year, driven by the popularity of the 5th Gen AMD EPYC™ processors and MI350 Series GPUs. The Client and Gaming segments reported combined revenues of $4 billion, with client revenue hitting a record $2.8 billion, up 46% year-over-year. The gaming segment experienced a remarkable 181% increase, reaching $1.3 billion, attributed to higher semi-custom revenue and strong demand for Radeon™ gaming GPUs. However, the Embedded segment saw a decline, with revenue at $857 million, down 8% year-over-year.
Strategic Partnerships and Future Outlook
AMD's growth strategy is further supported by several strategic partnerships, notably with OpenAI and Oracle. OpenAI has selected AMD as a core partner for deploying a substantial amount of AMD GPUs for AI infrastructure, while Oracle is set to introduce an AI supercluster powered by AMD technology. These collaborations indicate AMD's commitment to expanding its footprint in the AI and cloud computing markets.
Looking ahead, AMD anticipates continued growth, projecting fourth-quarter revenue to be approximately $9.6 billion, with a non-GAAP gross margin of around 54.5%. This outlook reflects a year-over-year growth of about 25% and a sequential increase of approximately 4%.
Conclusion
AMD's third-quarter results for 2025 demonstrate a strong upward trend in revenue and profitability, driven by robust demand across its product lines and strategic partnerships that enhance its market position. The company's focus on high-performance computing and AI technologies positions it well for sustained growth in a rapidly evolving tech landscape. As AMD continues to innovate and expand its offerings, it remains a key player in the semiconductor industry, poised to capitalize on future opportunities.