AMD’s Data Center Dominance Continues To Start 2025
Advanced Micro DevicesAMD may not be NvidiaNVDA, but its latest earnings show it might not need to be. In its latest quarterly performance, the chipmaker reported a 36% increase in revenue and a 55% rise in Non-GAAP net income.
- Data center sales — which include EPYC server chips and AI products — drove nearly half of AMD’s Q1 revenue, rising 57% to $3.7B.
- The Client and Gaming segment — covering chip sales for consumer tech — grew a still-impressive 28% year-over-year to $2.9B, with operating margins nearly doubling to 17%.
The plus side: Strong performance led AMD to raise its Q2 forecast to $7.4B in sales — ahead of analysts’ $7.25B target. However, the company forewarned that new export controls could result in up to $1.5B in lost revenue this year, with over $800M already booked in Q1. There’s reason to believe that the export restrictions could be relaxed, with the Trump administration reportedly mulling an “easing of regulations” in some markets — a potential lift for AMD and competitors like Nvidia, which earmarked over $5.5B in charges tied to the export controls.