Advanced Micro Devices, Inc.'s Stock Analysis

AMD Reports Record Revenue and Earnings for Q3 2025

Advanced Micro Devices, Inc. (AMD) announced its financial results for the third quarter of 2025, reporting record revenue of $9.2 billion, a 36% increase year-over-year. The company achieved a gross margin of 52% and operating income of $1.3 billion, with net income reaching $1.2 billion, translating to diluted earnings per share of $0.75. On a non-GAAP basis, gross margin was 54%, operating income was $2.2 billion, and net income was $2 billion, with diluted earnings per share at $1.20. Notably, the results did not include revenue from AMD Instinct MI308 GPU shipments to China, which has been affected by U.S. export controls.

The Data Center segment generated $4.3 billion in revenue, up 22% year-over-year, driven by strong demand for AMD EPYC processors and Instinct GPUs. The Client and Gaming segment saw revenue of $4 billion, a 73% increase year-over-year, with record sales of Ryzen processors. The Embedded segment reported $857 million, down 8% year-over-year. AMD announced strategic partnerships to deploy AI infrastructure, including collaborations with OpenAI and Oracle, and highlighted ongoing investments in AI and high-performance computing as key drivers for future growth.

Nov 04, 2025 16:16:10

AMD Completes Sale of ZT Group to Sanmina for $2.4 Billion

Advanced Micro Devices, Inc. has finalized the sale of ZT Group International, Inc. to Sanmina Corporation as part of an agreement signed on May 18, 2025. The transaction included the issuance of 1,151,052 shares of Sanmina common stock and a cash payment of $2.4 billion, with potential additional cash consideration of up to $450 million based on certain conditions. AMD retains ZT’s design and customer enablement teams to enhance its AI systems for cloud clients.

As a result of this divestiture, Sanmina has become a preferred manufacturing partner for AMD's cloud rack and cluster-scale AI solutions. This partnership aims to combine U.S.-based manufacturing capabilities with AMD’s design expertise, facilitating quicker deployment of high-performance AI systems for customers. The transaction is expected to strengthen AMD’s position in the data center market and enhance its operational capabilities.

Oct 27, 2025 08:49:27

AMD Issues Warrant to OpenAI for 160 Million Shares

Advanced Micro Devices (AMD) has issued a warrant to OpenAI OpCo, LLC, allowing the purchase of up to 160 million shares of AMD common stock at an exercise price of $0.01 per share. The warrant will vest in tranches based on the achievement of specific milestones related to the purchase of AMD Instinct GPU products, starting with an initial delivery of 1 gigawatt of AMD Instinct MI450 Series GPUs. Full vesting is contingent upon OpenAI purchasing a total of 6 gigawatts of AMD products, with additional conditions tied to AMD's stock price targets.

This strategic partnership aims to enhance OpenAI's AI infrastructure through large-scale deployments of AMD technology. The first phase of this collaboration will commence in the second half of 2026, with AMD expecting significant revenue generation from this agreement. The partnership is designed to align the interests of both companies and is anticipated to contribute positively to AMD's financial performance, including potential increases in non-GAAP earnings per share.

Oct 06, 2025 07:04:49

AMD Chief Accounting Officer Resigns; Interim Replacement Announced

Philip Carter, the Chief Accounting Officer of Advanced Micro Devices, has resigned effective September 5, 2025, to accept a position as Chief Financial Officer at another company. His departure is not related to any disputes or disagreements regarding the company's accounting practices or financial reporting.

In the interim, Jean Hu, AMD's Executive Vice President, Chief Financial Officer, and Treasurer, will take over the responsibilities of Chief Accounting Officer while the company searches for a permanent replacement. There are no disclosed arrangements regarding her appointment, and she does not have any material interests in transactions that require disclosure.

Aug 25, 2025 16:07:00

AMD Reports Record Revenue and Strategic Business Developments

Advanced Micro Devices (AMD) announced financial results for the second quarter of 2025, reporting a record revenue of $7.7 billion, a gross margin of 40%, and a net income of $872 million, which translates to diluted earnings per share of $0.54. The results were affected by U.S. Government export controls on AMD's MI308 data center GPU products, leading to approximately $800 million in inventory and related charges. Without these charges, the non-GAAP gross margin would have been about 54%. The company experienced significant year-over-year revenue growth, particularly in its Data Center and Client and Gaming segments, with increases of 14% and 69%, respectively.

AMD also highlighted several strategic partnerships and product announcements aimed at enhancing its AI and data center capabilities. The company entered into a definitive agreement to sell its data center infrastructure manufacturing business for $3 billion in cash and stock, which is expected to close by the end of 2025. Additionally, AMD announced its latest AI solutions and collaborations with major partners, reinforcing its position in the high-performance computing market. For the third quarter of 2025, AMD anticipates revenue of approximately $8.7 billion, excluding any revenue from MI308 shipments to China, which are currently under review by the U.S. Government.

Aug 05, 2025 16:16:31

AMD Executive Compensation Changes and Equity Awards Announced

On June 27, 2025, Advanced Micro Devices' Board of Directors approved salary increases for several members of its executive team, effective July 1, 2025. Additionally, on August 15, 2025, these executives will receive equity awards under the 2023 Equity Incentive Plan, with varying target values based on their roles. Dr. Su will receive a mix of 75% performance-based restricted stock units (PRSUs) and 25% stock options, while other executives will receive a combination of 60% PRSUs, 20% stock options, and 20% time-based restricted stock units (RSUs). The actual number of PRSUs earned will depend on the company's total shareholder return relative to the S&P 500 Index over a performance period ending August 15, 2028.

The PRSUs may range from 0% to 250% of the target number based on performance metrics, including total shareholder return and non-GAAP earnings per share. If the company's total shareholder return is negative, the maximum PRSUs that can be earned is capped at 100%. Stock options will have an exercise price equal to 100% of the closing price on the grant date and will vest over a four-year period, while RSUs will also vest quarterly over the same duration. In the event of a change in control, the earned PRSUs will convert to RSUs, with specific vesting terms outlined.

Jul 02, 2025 16:14:22

AMD to Sell ZT Systems for $3 Billion to Sanmina

AMD has announced a definitive agreement to divest its ZT Systems data center infrastructure manufacturing business to Sanmina for a total of $3 billion, which includes a contingent payment of up to $450 million. This transaction is expected to close by the end of 2025, pending regulatory approvals and customary closing conditions. As part of the deal, Sanmina will also become a preferred manufacturing partner for AMD's cloud-based AI solutions, while AMD will retain ZT Systems' design and customer enablement teams to enhance the quality and deployment speed of its AI systems.

The divestiture aligns with AMD's strategy to optimize its operations following the acquisition of ZT Systems, which was initially announced in August 2024. Sanmina's capabilities in liquid cooling and high-quality manufacturing are expected to complement AMD's offerings in the AI and cloud infrastructure sectors. This partnership aims to strengthen AMD's manufacturing capabilities and improve product delivery for its cloud customers.

May 19, 2025 07:50:48

AMD Reports $7.4 Billion Revenue in Q1 2025 Financial Results

AMD announced its financial results for the first quarter of 2025, reporting revenue of $7.4 billion, a 36% increase compared to the same quarter last year. The company achieved a gross margin of 50%, with operating income at $806 million and net income of $709 million, translating to diluted earnings per share of $0.44. On a non-GAAP basis, the gross margin was 54%, with operating income of $1.8 billion and net income of $1.6 billion, resulting in diluted earnings per share of $0.96. The growth was driven by strong performance in AMD's core businesses and data center segments, particularly with EPYC CPUs and Instinct GPUs.

In terms of segment performance, the Data Center segment generated $3.7 billion in revenue, marking a 57% year-over-year increase. The Client and Gaming segments reported $2.9 billion in revenue, a 28% increase, although gaming revenue saw a decline due to reduced semi-custom sales. AMD's acquisition of ZT Systems aims to enhance its capabilities in the AI sector, addressing a significant market opportunity. The company continues to invest in research and development to support long-term growth and shareholder value.

May 06, 2025 16:16:45

AMD Completes ZT Systems Acquisition to Enhance AI Solutions

AMD has finalized its acquisition of ZT Systems, a provider of AI and compute infrastructure, which is anticipated to enhance its capabilities in delivering AI solutions. This strategic move aims to combine AMD's silicon and software with ZT Systems' design expertise, potentially positioning AMD to address significant opportunities in the data center market. Key personnel from ZT Systems will join AMD's Data Center Solutions business unit to facilitate integration and accelerate AI infrastructure deployment.

However, AMD has acknowledged potential challenges related to the integration of ZT Systems and the sale of its manufacturing business. There are risks that the expected benefits and synergies from the acquisition may not materialize as planned, and unanticipated costs could arise during the integration process. Additionally, the transaction may impact AMD's relationships with various stakeholders and could disrupt business operations.

Mar 31, 2025 08:37:51

Company Issues $950 Million in Unsecured Commercial Paper

The Company has issued $950 million in unsecured commercial paper under its commercial paper program, which is exempt from registration under federal and state securities laws. The commercial paper will not be registered under the Securities Act and cannot be offered or sold except in compliance with applicable exemptions from registration requirements. The press release clarifies that the information provided does not constitute an offer to sell or solicit an offer to purchase any securities, nor will there be any sale of the commercial paper in jurisdictions where such actions would be illegal.

Mar 24, 2025 16:17:24