- AMD’s adjusted earnings per share (EPS) for the second quarter were 48 cents, falling short of the estimated 49 cents, and down from last year’s 69 cents.
- The company reported a revenue of $7.69 billion, a 32% increase year-over-year, surpassing the estimated $7.43 billion.
- Adjusted gross margin stood at 43%, in line with estimates but a decline from last year’s 53%.
- Capital expenditure surged by 83% year-over-year to $282 million, exceeding the expected $176.5 million.
- Adjusted operating income was $897 million, a 29% decrease year-over-year, slightly below the forecasted $902.8 million.
- The adjusted operating margin dropped to 12% from 22% year-over-year, matching the estimate of 12.1%.
- Free cash flow increased significantly to $1.18 billion, compared to $439 million last year and much higher than the expected $474.1 million.
- Research and Development expenses rose by 20% year-over-year to $1.89 billion, above the anticipated $1.72 billion.
- For the third quarter of 2025, AMD projects revenue to be around $8.7 billion, with a variance of $300 million.
- The company attributes expected growth in the second half of the year to strong demand for its computing and AI products, particularly the AMD Instinct MI350 series accelerators, alongside EPYC and Ryzen processor market share gains.
- Analyst ratings consist of 45 buys, 17 holds, and 3 sells for AMD.
Advanced Micro Devices on Smartkarma
Analyst coverage on Advanced Micro Devices (AMD) on Smartkarma showcases positive sentiments from top independent analysts. William Keating‘s report, “AMD Advancing AI 2025: Key Takeaways,” highlights partnerships and advancements in AI technology, with notable support from industry leaders like Sam Altman and Oracle.
Nicolas Baratte‘s insights, such as “AMD Claims Its New GPU Is on Par with Nvidia” and “Semiconductor Shopping Season Is Now,” emphasize AMD’s competitive positioning in the AI market and strategic acquisitions to bolster its chip design and AI technology capabilities, positioning the company as a strong alternative to industry giants like Nvidia and TSMC.
A look at Advanced Micro Devices Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Advanced Micro Devices (AMD) shows a promising long-term outlook based on its Smartkarma Smart Scores. With strong scores in Growth, Resilience, and Momentum, the company is positioned well for future success. The Growth score of 3 reflects a positive trajectory for AMD’s expansion and development within the semiconductor industry. Additionally, a Resilience score of 4 indicates the company’s ability to weather market challenges and maintain stability. Furthermore, a Momentum score of 5 suggests that AMD has significant forward momentum in its operations.
Overall, Advanced Micro Devices, Inc. continues to demonstrate strength in key areas essential for long-term growth and sustainability. While the company’s Value and Dividend scores are more moderate, its high scores in Growth, Resilience, and Momentum underscore a positive outlook for AMD’s future performance in delivering semiconductor products and services to a global customer base.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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