Business

AMD Reports Strong Q2 2025 Data Center Revenue Growth

Published

4 weeks ago

23 September, 2025

Editorial

Advanced Micro Devices (AMD) has reported a significant increase in its data center revenue for the second quarter of 2025, reaching $3.24 billion. This figure marks a 14% year-over-year growth, driven by strong demand for its EPYC CPUs, which are now powering over 1,200 cloud instances globally. Despite the positive revenue growth, AMD faced challenges due to an $800 million impairment related to its MI308 product.

The upcoming MI355 graphics card presents a noteworthy development for AMD, promising a 40% increase in tokens per dollar compared to Nvidia’s B200. This enhancement positions AMD to compete more effectively in the rapidly evolving AI inference market. Furthermore, AMD is set to launch its MI400 “Helios” platform in 2026, which will deliver 40 PF FP4 performance and a 50% increase in memory bandwidth, specifically designed for rack-scale applications.

Diversifying Demand Beyond Hyperscalers

AMD’s strategy includes diversifying its customer base beyond traditional hyperscalers. The company is currently involved in over 40 sovereign AI projects, including partnerships with institutions like the University of Maine. Such initiatives are expected to generate predictable, multi-year revenue streams, reducing reliance on a limited number of customers.

From an investment perspective, AMD’s stock is trading at 40.4 times its projected earnings for fiscal year 2025 and 26.2 times for fiscal year 2026. This valuation is supported by anticipated growth in earnings per share, projected to rise from $3.90 to $6.01 in the coming years.

AMD’s evolution from a laggard to a significant player in the tech industry highlights its commitment to innovation in data center CPUs and AI accelerators. While the recent quarter showcased its strengths, investors are advised to consider the broader context of AMD’s performance and market position.

As AMD continues to develop its capabilities in AI and data center solutions, the company remains focused on leveraging its technological advancements to capture a larger share of the growing market.