AMD Projects Strong Growth in 2025 Despite Economic and Regulatory Pressures

Advanced Micro Devices Inc. (AMD) expects strong growth this year, bolstered by its expanding product lineup, even as it navigates a challenging macroeconomic climate and new U.S. export restrictions targeting sales to China.

During AMD’s fiscal first-quarter earnings call, CEO Lisa Su said that while the global environment remains “dynamic,” the company is well-positioned to outperform due to the strength of its product portfolio. Su noted that restrictions on the export of its Instinct MI308X accelerators to China are expected to be offset by momentum in its core computing and AI businesses.

The company anticipates double-digit revenue growth in 2025, driven by increased market share for its new “Zen 5” Epyc and Ryzen CPUs, as well as its Radeon GPUs. Su also confirmed AMD plans to scale up production of its next-gen Instinct MI350 AI accelerators in the second half of the year.

“We see the current environment as a strategic opportunity to further differentiate AMD,” Su said. “Our growing portfolio combines leadership in compute and AI across data centers, PCs, edge, and embedded applications.”

AMD reported first-quarter revenue of $7.4 billion—up 36% year-over-year and above the $7.1 billion expected by analysts. Adjusted earnings per share came in at 96 cents, topping Wall Street’s estimate of 94 cents. The company’s stock rose 1.8% in after-hours trading, though it remains down roughly 18% year to date.

Data center revenue reached $3.7 billion, a 57% year-over-year increase, driven by strong sales of Epyc CPUs and Instinct GPUs. Su said the company delivered a strong start to 2025, marking the fourth straight quarter of accelerating annual growth.

For the current quarter, AMD expects revenue of approximately $7.4 billion, plus or minus $300 million—above the $7.2 billion projected by analysts. However, it anticipates adjusted gross margins of around 43%, factoring in $800 million in charges related to compliance with the new export control rules.

Elsewhere, AMD’s client segment posted a 68% jump in revenue to $2.3 billion on strong Ryzen demand, while gaming revenue declined 30% to $647 million due to lower semicustom product sales.