AMD has posted its first quarter 2025 financial results, and with $7.4 billion in revenue and a gross margin of 50%, it's good news. The company's impressive revenue was once again driven by growth in the Data Center segment, which saw a first-quarter revenue increase of 36% year over year.
AMD CEO Dr. Lisa Su cites the company's expanding 'data center and AI momentum' as playing a key role in its continued success (this is the fourth consecutive quarter of growth). However, AMD's Client and Gaming segment seems to be doing well, too, with revenue up 28% year over year.
This covers AMD Ryzen products for desktop and mobile devices, Radeon GPUs, and hardware for consoles like the PlayStation and Xbox Series X|S. However, AMD's Ryzen processors grew revenue here, with Client revenue growing by a massive 64% year over year. AMD's Gaming business, on the other hand, fell by 30%, even with the recent launch of the Radeon RX 9070 Series.
Breaking it down, Client revenue grew from $1.4 billion in Q1 2024 to $2.3 billion in Q1 2025, while Gaming revenue dropped from $0.9 billion in Q1 2024 to just $0.6 billion in Q1 2025
However, this is not to say that the Radeon RX 9070 XT and RDNA 4 have failed to make an impression. The 30% drop also coincided with declining console hardware sales for PlayStation and Xbox in the first few months of 2025, with AMD chalking it up to a "decrease in semi-custom revenue". AMD Ryzen is currently experiencing significant growth in the desktop segment, with the best-selling CPUs at most retailers currently predominantly made up of Ryzen chips, with the AMD Ryzen 7 9800X3D leading the charge.
AMD's strategic highlights for the Client and Gaming segment include recent product launches like the 16-Core AMD Ryzen 9950X3D processor, the Ryzen AI Max+ and other mainstream notebook processors, the Radeon RX 9070 Series of GPUs for PC gamers, and the arrival of the new AI-powered FSR4.
AMD expects similar performance in Q2, projecting revenue of $7.4 billion, plus or minus $300 million.
