AMD Reports Strong Revenue Growth in 3Q25

AMD delivered another standout quarter in 3Q25, surpassing Wall Street’s expectations. The company reported revenue of $9.2 billion, topping the $8.7 billion consensus, driven by broad-based demand for high-performance compute products.

Net income rose 61% YoY to $1.2 billion, while gross margin expanded to 52% on a richer product mix. Results excluded any revenue from MI308 GPU shipments to China due to export restrictions. AMD’s inventory-to-COGS ratio rose from 1.53 in Q2 to 1.74 in Q3, suggesting potential inventory pressure ahead, though management expects demand strength to absorb channel stock as Ryzen and Instinct shipments scale through the holiday and AI upgrade cycles.

The Data Center segment grew 22% YoY and 34% QoQ to $4.3 billion, driven by strong demand for Instinct MI350 Series GPUs. The Client segment posted $2.8 billion in revenue, up 46% YoY. In Gaming, revenue jumped 181% YoY to $1.3 billion. The Embedded segment delivered $857 million, up 4% QoQ but down 8% YoY as industrial and networking demand softened.

For 4Q25, AMD expects revenue of $9.6 billion ± $300 million, representing ~25% YoY growth and ~4% sequential growth, excluding MI308 shipments to China. The company projects a non-GAAP gross margin of 54.5% and operating expenses of $2.8 billion, with double-digit growth expected in data center and embedded segments.