AMD's gaming division revenue drops 30% but Zen5 is a huge success

winjer

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The gaming graphics group saw revenue slip 30 percent to $647 million, mainly because console-chip royalties dropped – even though the Radeon RX 9000 series launched. On the pro-GPU side, the Instinct accelerators are ready for prime time, but U.S. export controls are holding back the MI308 models bound for China unless AMD secures special licenses. That's expected to shave about $700 million off Q2 and up to $1.5 billion over the full year. Despite that, AMD still anticipates double-digit growth in Instinct cards once licensing catches up.
The company pulled in $7.44 billion in revenue, up 36 percent from this time last year, and net income jumped to $709 million from $123 million. That boost came from two main areas: client CPUs and data center chips. On the client side, Ryzen desktop and notebook processors generated $2.29 billion, a 68 percent increase over Q1 2024's $1.37 billion. New parts like the Ryzen 7 9800X3D and 9 9950X3D helped, and AMD also scored a lot more OEM deals. In fact, major PC makers such as HP, Lenovo, Dell, and Asus are offering 80 percent more systems with Ryzen Pro than they did a year ago. Over in the data center world, Epyc "Turin" chips are now shipping with all the big server vendors, and that lifted revenue from $2.36 billion to $3.67 billion. AMD also ran its first test wafers at TSMC's new Arizona plant, using their N4 process. Those chips will start production in the U.S. later this year. Meanwhile, AMD and TSMC are testing the next-gen "Venice" silicon on the N2 node, aiming for a 2026 launch.
The embedded processors unit stayed flat again, mirroring trends across the industry. That balancing act kept overall profits healthy. Looking ahead, AMD expects Q2 2025 revenue around $7.4 billion, give or take $300 million, driven by continued Ryzen and Epyc momentum and tempered by gaming and embedded market headwinds. As this year unfolds, hardware gurus will be watching how Zen 5's H2 roadmap plays out, especially with U.S.-made N4 chips coming online and the development of Venice on N2

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