AMD posts record Q3 revenues with huge growth
AMD secures massive growth, with Ryzen and Radeon leading the charge
AMD has unveiled its financial results for Q3 2025, reporting record quarterly revenue of $9.2 billion with a gross margin of 52%. This represents a 36% growth in revenue over Q3 2024. However, AMD notes that its quarterly revenue and forecast do not include any revenue from Instinct MI308 GPUs to China.
Compared to last quarter, AMD’s revenue has grown by 20%, with its gross margin increasing by 11 points. Not only is AMD boosting its revenues, it’s boosting its profitability. However, it is worth noting that AMD’s growth is currently led by its client and gaming segments, rather than its data centre segment. This has left many analysts disappointed, as they want AMD to achieve a higher market share in the lucrative AI market.
AMD Ryzen and AMD Radeon are the biggest winners of Q3 2025
Overall, AMD’s Client and Gaming revenues have grown by 73% year-over-year. This group’s operating margins have increased from 12% to 21%, significantly increasing the profitability of this market segment.
This increase in revenue is due to rising Ryzen CPU sales, higher semi-custom revenue, and strong demand for AMD’s RDNA 4 GPUs. During Q3 2025, AMD expanded FSR 4 support to more games, launched its Ryzen Threadripper 9000 CPU lineup, and ASUS/Xbox released their new AMD-powered ROG Xbox Ally series handhelds.
Large growth for data center, but AI hawks want more
AMD’s data center segment grew 22% year over year, thanks to rising EPYC CPU sales and AMD Instinct MI350 accelerator sales. Margins in this segment have decreased, primarily due to higher investments and associated expenses.
AMD’s next-generation MI450 GPUs are expected to greatly increase AMD’s data center revenues in 2026. This product is expected to bring AMD in line with Nvidia’s highest-end AI products, making them a larger competitor within the larger AI market. This could make 2026 an explosive year for AMD, if demand for AI hardware continues to increase.
The only segment that declined for AMD this quarter is its embedded segment. Its revenue was down 8% year-over-year. This led to lowered margins. Quarter over quarter, this segment did see a rise in revenue and income, so it isn’t all bad news for AMD’s embedded segment.
What’s next for AMD?
Q3 2025 was a strong quarter for AMD, and Q4 is expected to be even better for the company. AMD expects revenues of $9.6 billion and a gross margin og 54.5%. That means that AMD expects more revenue and rising profits.
2026 is expected to be a big year for AMD. The launch of Zen 6 should see CPU sales increase, both within the data center and client/gaming segments. Furthermore, the launch of the MI450 is expected to increase demand for AMD Instinct products. If this is the case, 2026 should be a record year for AMD. That said, these new products aren’t launching at the start of 2026. These products will only have an impact in mid-late 2026.
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