AMD posted strong results in the first quarter of 2025 and announced significant increases in investment in product development, AI solutions, and go-to-market strategies.
Despite economic uncertainties, the company sees ample opportunities to increase market share in the data center, client, and AI markets. This was evident during the presentation of the quarterly results.
Quarterly revenue was $7.4 billion, down 3 percent from the previous quarter but up 36 percent year-over-year. This growth was primarily driven by strong performance from Instinct GPUs and EPYC CPUs for data centers, and Ryzen CPUs for PCs. Operating profit grew 57 percent year-on-year to $1.7 billion. The gross profit margin remained stable at 54 percent.
CEO Lisa Su (photo) sees the current market as a strategic moment. AMD is expanding its investments in AI software, scalable data center solutions, and its technology roadmap. The recent acquisition of ZT Systems plays a key role in accelerating new GPU architectures, including the upcoming MI350 and MI400.
Strong growth in data centers
The data center division saw revenue growth of 57 percent to $3.7 billion. EPYC processors remain popular with cloud providers and large enterprises. All of the top 10 telecom companies and nine of the ten largest car manufacturers now run on EPYC-based platforms. Demand for Instinct GPUs for AI applications is also growing rapidly, with expansion into generative AI, search queries, and recommendation systems.
AMD is also accelerating the pace at which updates for its ROCm AI software stack are released. These are no longer quarterly, but biweekly. These updates provide direct support for new training and inference workloads.
The client division also performed strongly. Revenue grew 68 percent year-over-year, driven in part by an increase in high-end desktop and laptop processors. Sales of Ryzen Pro processors to business customers were particularly strong. Partners such as HP, Lenovo, Dell, and Asus released significantly more AMD systems, leading to strong demand in sectors such as energy, telecom, and healthcare. The embedded division saw a slight decline of 3 percent, but AMD expects recovery in the second half of 2025, particularly in communications and aviation applications.
AMD remains optimistic about the future and expects solid growth in the coming quarters, thanks in part to its broad product portfolio and increased investment in strategic technologies.