Advanced Micro Devices (AMD) reported a significant rebound in its Gaming segment for Q2 2025, with revenues increasing 73.1% year-over-year to $1.122 billion, accounting for 14.6% of total revenues. The growth was largely attributed to high demand for Radeon GPUs and normalized console inventories, which pushed semi-custom revenues up sharply.
AMD announced collaborations with Microsoft and Sony to develop next-generation gaming technologies, including custom chips for Xbox devices and enhancements for immersive gaming experiences. Looking ahead, AMD expects Gaming segment revenues to remain flat in Q3 2025 but anticipates a decline in console-related revenues in Q4 2025 due to seasonal factors.
AMD shares have risen 37% year to date, outperforming the broader Zacks Computer & Technology sector, which increased 11.8%. The Zacks Consensus Estimate for Q3 2025 earnings is set at $1.17 per share, a decrease of 27.17% year-over-year.
