AMD's Gaming revenue is up 73% thanks to strong demand for its new Radeon GPUs

AMD has released its latest financial report for the second quarter of 2025, with the company recording a record $7.7 billion in revenue. However, due to "inventory and related charges associated with US export control restrictions" for its Instinct data center AI GPUs, the company's operating income was in the red to the tune of $134 million.

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However, it's all good news when looking at AMD's Client and Gaming Segment, which covers the company's lineup of Ryzen and Radeon products for consumers. With record CPU sales, "strong demand" for the company's new RDNA 4-powered Radeon RX 9000 Series GPUs, and increased demand for "console gaming products," revenue was up 69% year-over-year.

It's no secret that AMD's Ryzen range of processors is quickly becoming a go-to processor for all users, surpassing Intel in several markets. However, Q2 2025's Gaming revenue, which covers Radeon products as well as PlayStation and Xbox consoles, grew by a whopping 73% year-over-year.

This is an excellent indication that the company's new line-up of RDNA 4 GPUs for PC gaming is selling well, as the margins for console hardware and revenue are generally pretty slim by comparison. AMD specifically mentions "strong AMD Radeon GPU demand" as one of the primary growth drivers. Semi-custom revenue for PlayStation and Xbox consoles is also up, with AMD noting that its Client and Gaming Segment will include Xbox consoles, PCs, and handhelds that will make use of new AMD custom chips in the future.

The operating income for AMD's Client and Gaming Segment also grew from $166 million a year ago to an impressive $767 million for Q2 2025. As part of the strategic highlights for the segment, AMD highlights products like the launch of the new mainstream Radeon RX 9060 XT gaming GPU, Copilot+ mobile workstation PCs, the Radeon AI PRO R9700 GPU for AI, and the latest Ryzen Threadripper processors.