AMD has just released its figures for the third quarter of its 2025 financial year, and let’s face it: they’re excellent. In detail, the Reds announced record sales of $9.2 billion, with a gross margin of 52%. Year-on-year, this represents an increase of 36%. To be more in line with Nvidia, AMD’s sales figures exclude Instinct MI308 sales in China. Compared with the previous quarter, we have an overall sales increase of 20%, as well as an 11% rise in gross margin. Importantly, the Client and Gaming divisions are driving this growth.
Q3 2025: AMD buoyed by Ryzen and Radeon
Contrary to what one might think these days, AMD’s growth this quarter was driven by its customer and gaming segments, rather than by the data center segment…And as an analyst who hates to be surprised, this situation disappointed many of the latter, even though it testifies to a company with balanced revenue streams.
In detail, AMD’s Client and Gaming divisions grew by 73% year-on-year. The operating margin has risen from 12% to 21%, considerably changing the level of profitability in this market segment. How can these figures be explained? Mainly by the increase in sales of Ryzen processors, higher revenues from semi-custom configurations (consoles and the like) and the success of RDNA 4 GPUs.
Growth in data centers (but not enough for analysts)
Given the lukewarm reception from analysts, one might think that AMD is failing in this sector. However, the data center business recorded 22% year-on-year growth, thanks to higher sales of EPYC processors and Instinct MI350 . But the high level of investment in this segment still penalized the margin rate compared with Q3 2023 (25% vs. 29%).
AMD looks very positive for Q4, and again anticipates higher sales and margins.
