Advanced Micro Devices (AMD) has shaken up the semiconductor industry with a remarkable 36% year-over-year revenue growth in the first quarter of 2025, signalling a powerful resurgence in the race for AI chip supremacy.
Once considered a “sleeping giant” in the artificial intelligence hardware space, AMD’s latest results underscore its rapid transformation into a formidable contender, challenging both industry stalwarts and emerging rivals.
The company reported quarterly revenue of $7.44 billion, handily beating analyst expectations and marking its fastest growth pace in over two years. This surge was driven primarily by explosive demand for AMD’s AI-focused data centre products, including the EPYC server CPUs and Instinct GPUs, which are increasingly powering the next generation of cloud computing and generative AI workloads.
The client computing segment also delivered robust results, with a 68% jump attributed to strong sales of Zen 5 Ryzen processors in both consumer and commercial markets.
Profitability has kept pace with top-line growth, as AMD’s gross margins improved to 50% on a GAAP basis and 54% on a non-GAAP basis, reflecting operational efficiency and a favourable product mix. Earnings per share soared, further boosting investor confidence in the company’s long-term strategy and execution.
CEO Dr. Lisa Su highlighted ongoing market share gains against key competitors, particularly in the PC and data centre markets, while also noting the company’s progress in forming strategic partnerships with major cloud service providers and hyperscale clients.
Despite this stellar performance, AMD stock remains more than 55% below its all-time high reached in March 2024, suggesting significant room for recovery if growth trends persist. The company did caution that new export restrictions to China could impact revenue in the coming quarter by as much as $1.5 billion, resulting in a one-time inventory charge. Nevertheless, AMD’s outlook remains optimistic, with guidance for the second quarter pointing to continued double-digit revenue growth and the highly anticipated launch of next-generation AI accelerators.
As the global demand for AI computing power intensifies, AMD’s resurgence is capturing the attention of investors and industry watchers alike. With accelerating innovation, expanding partnerships, and a renewed focus on high-growth markets, AMD appears well-positioned to capitalise on the AI revolution and reclaim its place among the leaders in semiconductor technology.
