AMD achieved strong financial performance in the second quarter of 2025, with revenue increasing by 32% year-on-year to $7.7 billion, driven mainly by the sales growth of Epyc and Ryzen processors, despite challenges from export restrictions on data center AI. Revenue from the data center division grew by 14%, with strong demand for Epyc processors in cloud and enterprise workloads, especially in the AI application field. Through continued product innovation and extensive partnerships, AMD further strengthened its market position, achieving market share growth for 33 consecutive quarters.

AMD has achieved significant success in the high-performance computing field, with its technology currently powering over one-third of the world's fastest supercomputers, including the top two, El Capitan and Frontier. However, AMD faces challenges in the data center artificial intelligence business, as export restrictions from the United States have affected sales in the Chinese market, and the transition to the new generation Mi 350 series accelerator has led to a decline in revenue. Despite this, AMD has made substantial progress this quarter, collaborating with top model builders and AI companies to launch the Instinct M 350 series, which offers industry-leading memory bandwidth and capacity. Additionally, AMD is accelerating the development of its AI software and hardware capabilities through organic growth and a series of acquisitions to strengthen its leadership position in the AI infrastructure field. Looking ahead, AMD plans to launch its advanced Mi 400 series GPU in 2026, aimed at providing the highest AI system performance.

Revenue from AMD's client and gaming division grew 69% year-on-year to reach $3.6 billion, mainly driven by record sales of client CPUs and strong demand for custom gaming console SoCs and Radeon GPUs. Desktop CPU sales saw significant growth, especially the Zen 3 series processors, including the X3D model, consistently ranking on bestseller lists on major global e-commerce platforms. AMD also launched a desktop processor with 96 cores, providing a noticeable performance improvement. In the laptop market, demand for AMD processors was strong, with an expansion of market share in the high-end segment. In the commercial PC sector, adoption of AMD processors accelerated, with OEM consumption growing by over 25% and new enterprise customers signing contracts in multiple industries. It is expected that in the coming quarters, AMD will continue to drive revenue from client processors beyond market growth through its product portfolio and expansion of OEM partnerships.

In the gaming sector, AMD's revenue increased by 73% year-on-year to $1.1 billion, mainly due to significant growth in the semi-custom business and new collaboration projects with Microsoft and Sony. Strong demand for PC games, coupled with robust sales of the Radeon 9000 series CPUs, led the company to introduce the Radeon 9600 XT and Radeon AI Pro R 9700 GPUs to meet the needs of mainstream gamers and AI development. Despite a 4% year-on-year decrease in embedded business revenue, the market is gradually recovering, with growth expected in the second half of the year. AMD anticipates significant revenue and profit growth in the coming years as its AI business expands, particularly with strong customer interest in the upcoming Mi 400 series. The momentum of long-term design victories is also increasing, signaling that the company is poised to set new records in 2025.

In the second quarter of the company's fiscal year 2025, revenue reached 7.7 billion Vietnamese dong, an increase of 32% compared to the same period last year, mainly driven by strong sales of Ryzen and Epic processors, as well as an increase in semiconductor customer shipments. However, export restrictions in the US limited the sales of Mi38 in China. The gross profit margin was 43%, a decrease of 10 percentage points from the same period last year, mainly due to $80 million in inventory and related costs. Operating expenses increased by 32%, reflecting the company's strong investment in marketing and research and development to seize future AI expansion opportunities. Revenue from the data center department increased by 14%, but due to export restrictions, quarterly revenue decreased by 12%. Revenue from customers and the gaming department surged by 69%, setting a record, mainly driven by sales of Ryzen desktop CPUs and strong demand for gaming GPUs. The company expects to continue its growth momentum in the third quarter.

The company's operating revenue in the second quarter was $2.75 billion, accounting for 33% of total revenue, a decrease from $3.45 billion or 40% in the same period last year, mainly due to changes in product portfolio. In the second quarter, the company completed the acquisition of the Zt system and plans to sell ZTE's manufacturing business to Semina Cooperation for $3 billion by the end of 2025, with the transaction currently awaiting regulatory approval. The company generated $1.5 billion in operating cash flow and $1.2 billion in free cash flow in the second quarter, and repurchased $478 million worth of shares from shareholders, accumulating $1.2 billion in buybacks in the first half of the year. Currently, the company's total cash, cash equivalents, and short-term investments amount to $5.9 billion, with long-term debt at $3.2 billion. For the outlook of the third quarter, revenue is expected to be approximately $8.7 billion, a year-on-year growth of about 28%, mainly driven by strong double-digit growth in the customer, gaming, and data center divisions. The non-GAAP gross margin is expected to be 54%, non-GAAP operating expenses around $2.55 billion, with an expected effective tax rate of 13%.

In the telephone conference, the moderator guided participants on how to use the keypad to join the question queue, emphasizing that each person is limited to one main question and one follow-up question to ensure the efficiency of the meeting.

In the conversation with analysts, AMD CEO emphasized the company's strong performance in the client and gaming business areas, especially in desktop GPUs and AI applications. She stated that despite market uncertainties, they expect customer business to continue growing in the second half of the year, with the company expanding its market share in the enterprise market, particularly through partnerships with HP, Lenovo, and Dell. Additionally, she mentioned the potential impact of Intel's 18A technology release, but reiterated that it does not change AMD's long-term market strategy and confidence in market share growth.

The company is closely cooperating with the U.S. government to ensure its technology is globally applied, especially in the Chinese market. Currently, the company has several licenses under review and hopes to continue supplying M308 products to China after approval. Most of the inventory consists of work-in-progress items, which are expected to take several quarters to fully deplete. The company is satisfied with the improvement in the situation over the last 90 days and will continue to maintain business connections with the Chinese market, aiming to serve the market through M308.

AMD expressed great interest and expectations in the AI market of 2026, especially in collaboration with sovereign customers. They mentioned that collaborating with sovereign customers is an incremental opportunity for existing AI business growth, emphasizing the importance of working with various countries to establish sovereign computing capabilities. Additionally, AMD mentioned its collaboration project with the Kingdom of Saudi Arabia as a successful example of combining technology with sovereign ambitions, and highlighted the attractiveness of its open ecosystem in sovereign communities.

Discussed the impact of Mi products on gross margin in the early stages, as well as the sales level at which positive effects on gross margin can be achieved. At the same time, analyzed the potential changes in gross margin that Q4 sales growth may bring, emphasizing the importance of product market opportunities, total cost of ownership (TCO) for customers, and operational efficiency improvements for long-term sustained improvement in gross margin.

During the discussion, AMD detailed the market performance of its data center GPU, the Mi 355, emphasizing the strong growth trend since production began in June. They expect significant growth in Q3 and are optimistic about reaching a revenue of $7 billion for the year. Additionally, AMD mentioned the powerful performance of the Mi 355 in inference applications and the positive feedback from working with large customers on scaled deployments. They also introduced a new developer cloud service aimed at simplifying the process for developers to use AMD GPUs, which may not significantly increase revenue in the short term but will help expand the customer base and experience.

The discussion on the market adoption speed of the Mi 355 series products exceeded expectations, with broad customer interest, especially significant interest from new customers. Additionally, the attractiveness of the Mi 400 and Helios technology roadmaps has also led to customers participating in cooperation earlier, with overall positive market feedback.

Discussed that customer business is expected to show single-digit growth in the second half of the year, with the gaming business performing strongly in the second quarter but projected to remain stable in the second half, especially in the fourth quarter, as customers prepare for the holiday season ahead of time, leading to a potential downturn in overall gaming and customer business sectors.

Discussed the supply chain readiness and customer deployment plans for the Mi 350 and Mi 400 series products in large-scale cluster applications, noting that the cycle from processing to delivery of the products can be as long as 8 to 9 months. Emphasized the importance of closely collaborating with customers to ensure the products can meet their data center needs, especially in the full-rack scale design and implementation of the Mi 400 series.

Discussed in the context of a significant increase in GPU demand in data centers, how to achieve the goal of maintaining a stable gross profit margin and achieving growth by expanding high-margin server businesses, increasing commercial PC sales, and improving operational efficiency.

The conversation revolved around the huge business opportunities for the Mi 400 series in the artificial intelligence market, discussing the time frame and key factors to achieve a multi-billion dollar market opportunity. Emphasis was placed on AI customer adoption, the strong performance of the Mi 350 series, and the positive feedback for the Mi 400 series, pointing out that achieving this goal requires large-scale deployment, including inference and training. The importance of collaboration with key customers was also mentioned, but no specific time predictions were provided.

The dialogue discussed how AMD is adapting to the evolution of training and inference workloads, emphasizing the core role of GPUs in model processing, as well as investment in scalable architectures. AMD is adjusting its strategies based on customer feedback, aiming to become a comprehensive solution provider for large scale customer deployments.

During the conversation, it was mentioned that the data center business achieved strong double-digit growth, especially in servers and the Mi series. Although specific reports from third parties have not been released yet, the company is optimistic about the market share growth in the second quarter. Additionally, with the increasing demand for AI content, the CapEx for servers CPUs has become more significant, indicating that server opportunities will have huge potential in the second half of 2025 and beyond. Products like Turin and Genoa are widely adopted, and enterprise adoption rates are increasing, all of which are driving positive prospects for the server market.

Discussed how to handle the issue of the previous $800 million asset write-down in the Mi 308 project in China after obtaining the license, especially the status of finished goods inventory and the possibility of financial reversal. It was pointed out that most of the written-down assets are not finished goods that can be immediately shipped, so even with the license, time is needed to adjust the supply chain to meet demand.

The discussion focused on the layout and expected revenue contribution of the AI chip market in 2026. The development of the Mi 355 and Mi 400 series, as well as the progress of the Helios platform, were specifically mentioned. It is expected that Helios will make a significant revenue contribution in 2026. In terms of customer contribution, it is expected that early major contributions will come from traditional large-scale enterprises and emerging AI-native large enterprises, while contributions from sovereign clouds may appear later, depending on the timing of different construction phases.

The plan for the use of funds after selling Zt Company to obtain 3 billion in cash and stocks was discussed, emphasizing continued investment in the field of AI and pledging to return cash to shareholders through stock buybacks. It was also mentioned that the company's free cash flow in the second quarter reached 1.2 billion, demonstrating strong financial performance.

In a recent conference call, the company discussed the strong double-digit growth of its business departments, especially GPUs and CPUs, in the data center field, as well as the expected growth of customers and embedded businesses. The company pointed out that while GPUs are the main driver of incremental growth, multiple business lines have contributed to the sequential growth in revenue. In addition, regarding the expectations for the Mi 300 product, the company stated that its launch and reaching a run rate of $8 million will take time to gradually improve, and this process may not immediately show significant effects in the current quarter.