Advanced Micro Devices, Inc. Q2 FY2025 Earnings Call

· Earnings call transcript and AI-powered summary

Quarter Overview

  • Record quarterly revenue of $7.7B, up 32% year-over-year and 3% sequentially. Growth was driven by EPYC and Ryzen CPU strength and higher semi-custom shipments.
  • Free cash flow exceeded $1B, with $1.5B in operating cash flow and $1.2B in free cash flow.
  • GAAP gross margin was 43%, down 10 points year-over-year due to an $800M inventory write-down tied to U.S. export controls. Excluding this charge, gross margin was 54%, marking the sixth straight quarter of year-over-year expansion.
  • Export controls significantly impacted Data Center AI (Instinct MI308) results, but were offset by record EPYC and Ryzen CPU sales.

Segment Performance

Data Center

  • Revenue: $3.2B, up 14% year-over-year but down 12% sequentially due to halted MI308 shipments.
  • Set records for cloud and enterprise CPU sales; 33rd consecutive quarter of year-over-year CPU share gains.
  • Strong Turin (5th gen EPYC) ramp and sustained Genoa demand. Over 100 new cloud instances launched in Q2.
  • Ongoing AI compute tailwinds, with agentic AI driving higher CPU demand (each GPU token generating several CPU operations).
  • Operating loss: –$155M vs +$743M a year ago, primarily due to export control charges.

Data Center AI (Instinct GPUs)

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Operator: Greetings, and welcome to the AMD Second Quarter 2025 Conference Call. As a reminder, this conference is being recorded. And it is now my pleasure to introduce to you, Matthew Ramsay, VP of Investor Relations and Financial Strategy. Thank you, sir. Please go ahead. Matthew Ramsay: Thank you, and welcome to AMD's 2025 Second Quarter Financial Results Conference Call. By now, you should have had the opportunity to review a copy of our earnings press release and the accompanying slides. If you have not had the chance to review these materials, they can be found on the Investor Relations page 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 slides posted on our website. Participants in today's conference call are Dr. Lisa Su, our Chair and Chief Executive Officer; and Jean Hu, our Executive Vice President, Chief Financial Officer and Treasurer. This is a live call and will be replayed via webcast on our website. Before we begin, I would like to note that Jean Hu, Executive Vice President, Chief Financial Officer and Treasurer, will present at Citi's 2025 Global TMT Conference on Wednesday, September 3; and Forrest Norrod, Executive Vice President and General Manager of Data Center Solutions business unit, will present at the Goldman Sachs Communacopia and Technology Conference on Monday, September 8. Today's discussion contains forward-looking sta

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