Due to China ban: AMD makes operating loss despite record sales
AMD just beats its best sales quarter to date. Including: record sales of Ryzen processors for desktop PCs and strong Epyc sales.
AMD generated revenue of 7.685 billion US dollars in the second quarter of 2025. The exact figure is important, as only the last two decimal places prove the company's own record – At the end of 2024, AMD had sales of 7.658 billion dollars.
Compared to the same period last year, AMD's revenue grew by 32 percent. Nevertheless, the operating result collapsed to a minus of 134 million dollars. AMD explains this with the temporary export ban on AI accelerators specially adapted for China in the form of the Instinct MI308.
AMD cites around 800 million dollars in “costs for inventory and related expenses” in its own annual report. This probably largely refers to depreciation and amortization. Meanwhile, the US government is once again open to exports, but AMD has not yet received a supply license.
Due to the one-off costs, the gross margin falls to 40 percent. According to AMD, it would have been eleven percent higher without the write-downs. The net result looks much better: AMD makes 872 million dollars net profit – more than three times as much as a year earlier. This is due to a tax credit of 834 million dollars. Similarly, the operating cash flow rose from 593 million dollars to a good two billion dollars.
Processors flush money into the coffers
According to AMD, its own Epyc and Ryzen processors for servers and desktop PCs are selling particularly well. The Epyc CPUs are said to have “more than offset the headwind from Instinct MI308 shipments to China.”
Sales in the Data Center division rose by 14 percent to 3.24 billion dollars. For the first time in years, however, it made an operating loss of 155 million dollars due to depreciation.
AMDs Umsatz nach Segmenten aufgeschlĂĽsselt (4 Bilder)
AMD
)In contrast, the client segment based around Ryzen CPUs is flourishing. Sales of 2.5 billion dollars represent a record – compared to the same period last year, the segment grew by a good 67 percent. According to AMD, the current Ryzen 9000 desktop models are selling particularly well.
The gaming group – grew similarly strongly by 63 percent to 1.12 billion dollars. AMD combines all Radeon graphics cards and semi-custom chips for consoles in this group. Primarily, the console business should perform better again.
AMD only reports the operating result for clients and gaming in summarized form. It shoots up from 166 million to 767 million dollars.
Under “everything else,” AMD mainly reports the running costs for the Xilinx takeover. There is a minus of a good one billion dollars. With the Xilinx products, AMD generated 824 million dollars in sales in the Embedded division (-4 percent). The operating profit there fell by 20 percent to 275 million dollars.
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Stock market dissatisfied despite growth
In the current third quarter, AMD expects sales of 8.7 billion dollars (+/- 300 million). This corresponds to average growth of 28 percent compared to the previous year. According to AMD, the 8.7 billion dollars do not include MI308 accelerators for China because the supply license has not yet been granted.
The stock market is traditionally dissatisfied with AMD's annual report: the share price fell by almost four percent in after-hours trading.
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