TLDR
- AMD stock beats Q2 earnings expectations with $0.48 EPS vs $0.47 estimate
- Revenue hits $7.7 billion, topping Wall Street forecast of $7.4 billion
- Seven of top 10 AI companies now use AMD Instinct MI350 accelerator chips
- China export restrictions create $1.5 billion revenue impact for 2025
- Wall Street maintains buy rating with $189.65 average price target
Advanced Micro Devices delivered solid Q2 results that exceeded Wall Street expectations across key metrics. The chip maker posted adjusted earnings per share of $0.48, beating analyst estimates of $0.47.
Revenue came in at $7.7 billion, surpassing forecasts of $7.4 billion. For Q3 2025, AMD projects revenue between $8.4 billion and $9 billion.
AMD stock surged 43.9% over the past three months. This performance outpaced the Technology Select Sector SPDR Fund’s 13.3% gains during the same period.
The stock trades 12.9% below its 52-week high of $186.65 reached in August. Shares have gained 11.1% year-to-date in 2025.
AI Chip Adoption Accelerates
AMD CEO Lisa Su revealed that seven of the top 10 model builders and AI companies now use Instinct chips. This marks progress against Nvidia’s market dominance.
The adoption rate applies to AMD’s current MI350 series. The company’s next-generation MI400 chips launch in 2026 and may see even higher uptake.
OpenAI previously expressed enthusiasm about AMD’s upcoming processors. The AI company plans to use the new chips in its operations.
Analysts project AMD’s GPU sales will reach $1.3 billion in Q3 2025. Q4 estimates call for $2.2 billion in GPU revenue.
China Restrictions Create Near-Term Impact
Export controls on high-performance chips to China will hurt AMD’s results. The company faces a $1.5 billion revenue impact from China-based MI308 sales.
These restrictions primarily affect Q2 and Q3 2025 financial performance. Despite this headwind, AMD expects strong double-digit growth in its Data Center Instinct segment.
AMD maintains market share gains across multiple product categories. Desktop processor market share increased to 30.2% in recent quarters.
Wall Street analysts maintain a “Moderate Buy” consensus rating on AMD stock. The average price target of $189.65 implies 16.6% upside potential from current levels.
