News AMD posts record $7.685 billion revenue despite massive inventory charge — $800 million MI308 write-off not enough to stop biggest ever quarter

[Admin]

AMD posted record Q2 2025 revenue of $7.685 billion, driven by strong client and data center processor sales, though profitability was partially offset by an $800 million charge related to Instinct MI308 GPU export restrictions to China.

AMD posts record $7.685 billion revenue despite massive inventory charge — $800 million MI308 write-off not enough to stop biggest ever quarter : Read more

 

[Gururu]

Sounds great but the stock is all over this year. Also weaker than expected earnings hurt more than the revenue helped.

 

[dalek1234]

Meanwhile, Intel insiders are reporting 18A process yields to be at only 10%. Intel's future quarterly results should be quite entertaining, as AMD is eating Intel's lunch.

 

[TerryLaze]

Meanwhile, Intel insiders are reporting 18A process yields to be at only 10%.

For giant chips.

For normal sized chips they are doing pretty well.
https://www.linkedin.com/pulse/tech-news-intel-18a-process-yield-rises-55-surpasses-samsung-pvkpc

Meanwhile, Intel insiders are reporting 18A process yields to be at only 10%. Intel's future quarterly results should be quite entertaining, as AMD is eating Intel's lunch.

Did you look at the actual quarterly report that AMD posted?!
The only money maker amd had was server and that went from +932 to -155 (operating income) in one quarter... more than a billion less.
Based on sales of products alone AMD made a loss this quarter and that's with tariffs and tsmc's price increases not fully impacting them yet.

 

[Gururu]

Meanwhile, Intel insiders are reporting 18A process yields to be at only 10%. Intel's future quarterly results should be quite entertaining, as AMD is eating Intel's lunch.

Well Intel dumped a while ago and has been hanging onto $20 by a thread. Its not like one should buy one or the other. Neither are good choices right now.

 

[vanadiel007]

As Intel slowly starts fading away, AMD prices will go up over time due to lack of competition.
Should make for an interesting second hard market.

 

[DS426]

Sounds great but the stock is all over this year. Also weaker than expected earnings hurt more than the revenue helped.

The stock market has had much higher than normal volatility this year. More importantly, AMD is in a long-game battle with nVidia over AI, with this year certainly not being AMD's time-to-shine. We'll have to see how MI450 and the other related software and dev ecosystem enhancements pan out.

 

[DS426]

...

Did you look at the actual quarterly report that AMD posted?!
The only money maker amd had was server and that went from +932 to -155 (operating income) in one quarter... more than a billion less.
Based on sales of products alone AMD made a loss this quarter and that's with tariffs and tsmc's price increases not fully impacting them yet.

They still made a positive net income. That shift in server operating income loss was due to the ~$800m MI308 write-off; it would have been positive without that. That's a one-off problem, not a greater system problem at AMD. Moreover, AMD is expecting revenues of almost $1 bn more next quarter while operating costs actually drop somewhat, which would provide decent positive operating income numbers.

Also, the Client and Gaming Segment was also a money maker, coming in with a $767m operating income. Both of those bits -- Client and Gaming -- were way up on revenue YoY.

 

[bit_user]

For giant chips.

For normal sized chips they are doing pretty well.
https://www.linkedin.com/pulse/tech-news-intel-18a-process-yield-rises-55-surpasses-samsung-pvkpc

No, for Panther Lake's compute die. Hardly giant.

Although a leak, this is more recent than what you cited:

Intel is Reportedly Struggling With Its Next-Gen Panther Lake Chips, As The 18A Yield Rates Are Making It Difficult To Scale Production For Retail Launch

Intel's CPU chip ambitions are now at a stall, as a new report claims that Panther Lake production is facing difficulties.

wccftech.com

 

[TerryLaze]

They still made a positive net income.

Yes, that's why I said based on sales alone, they had a positive net income due to taxes.

That shift in server operating income loss was due to the ~$800m MI308 write-off; it would have been positive without that. That's a one-off problem, not a greater system problem at AMD.

Tariffs and export restrictions are not a one-off, they will affect everybody for a long time.
There are new ones on the way.
https://www.tomshardware.com/tech-i...-made-in-the-united-states-says-u-s-president

Moreover, AMD is expecting revenues of almost $1 bn more next quarter while operating costs actually drop somewhat, which would provide decent positive operating income numbers.

Huh?!
Operating expenses went up 9% from last quarter and 23% y/y.
Also revenue increased by almost 2bil y/y while that increased operating income by -400M
Operating income went down by 150% y/y.
An increased revenue does not automatically mean high income.

No, for Panther Lake's compute die. Hardly giant.

Although a leak, this is more recent than what you cited:

​

Intel is Reportedly Struggling With Its Next-Gen Panther Lake Chips, As The 18A Yield Rates Are Making It Difficult To Scale Production For Retail Launch

Intel's CPU chip ambitions are now at a stall, as a new report claims that Panther Lake production is facing difficulties.

wccftech.com

​

Where does that say that they are at 10% for panther lake????
As a matter of fact that article takes its info from an reuters article which says:
"early in the ramp" "Intel in the past has aimed for a yield north of 50% before ramping production"
There is no mention of what percentage the anonymous leakers think intel is at.

 

[bit_user]

Where does that say that they are at 10% for panther lake????

Third paragraph from the bottom:

"only 10% of PTL chips made by the 18A wafer are up to the specifications Intel wants them to be at, which indicates that chip defects are massive right now. It is said that Panther Lake chips have "three times too many defects" for HVM, and this is a concerning situation."​

The article further characterizes this as a "stall" and suggests that Panther Lake may miss its planned launch of Q4 2025, as a result.

 

[TerryLaze]

Third paragraph from the bottom:

​

"only 10% of PTL chips made by the 18A wafer are up to the specifications Intel wants them to be at, which indicates that chip defects are massive right now. It is said that Panther Lake chips have "three times too many defects" for HVM, and this is a concerning situation."​

The article further characterizes this as a "stall" and suggests that Panther Lake may miss its planned launch of Q4 2025, as a result.

They don't name any source for this other than "supply chain sources"
The one source they do link to for insufficient 18A yield rates is the one that says this "KeyBanc Finds That The Yields On Intel’s 18A Process Are Now At 55 Percent"

 

[helper800]

They don't name any source for this other than "supply chain sources"
The one source they do link to for insufficient 18A yield rates is the one that says this "KeyBanc Finds That The Yields On Intel’s 18A Process Are Now At 55 Percent"

Do you think the leaker wants to be sourced? Of course the leaker is going to be vague about who they are...

 

[adamXpeter]

I am a subpixel on that graph
Upgraded my personal PC from A10-7870K to 8400F.
Upgraded two i3-4130T to 4300G, brand new PCs.
Upgraded two A8-9600 to 4300G, BIOS upgrade, CPU, RAM swap.
Upgraded an A8-9600 to 3000G, BIOS upgrade, CPU, RAM swap.
Upgraded a 2200G to 4300G, BIOS upgrade, CPU, RAM swap.

 

[ottonis]

In a time of massive global demand for AI accelerators, I have no doubts that AMD will sell their AI-GPUs left over from the China deal like hot cakes. Maybe even at a higher price than originally expected.

 

[TerryLaze]

Do you think the leaker wants to be sourced? Of course the leaker is going to be vague about who they are...

The vague part isn't really the issue, the "supply chain" part is the weird part.
How is anybody in the supply chain going to know anything at all about how the yield is doing?!

"Intel isn't buying enough of xyz, so their yield must be low?!? "
Does that make sense?

 

[DS426]

...

Tariffs and export restrictions are not a one-off, they will affect everybody for a long time.
There are new ones on the way.
https://www.tomshardware.com/tech-i...-made-in-the-united-states-says-u-s-president

The MI308 write-off is a one-off because they were expected to ship, then that changed. It in itself isn't recurring, even if it is related to something that is. Yes, tariffs and export restrictions are ongoing and will be for some time. Sure, the full impact hasn't been felt yet, and they are still adding unpredictability today which can cause a H20 or MI308 situation, but financial forecasts can't pop that into their calculations going forward -- only what's expected on known (or thought to be known, at least at the time) quantities like effective tariff rates as announced and written to ink and export restriction limitations.

I guess I don't see what you're trying to say.

Huh?!
Operating expenses went up 9% from last quarter and 23% y/y.
Also revenue increased by almost 2bil y/y while that increased operating income by -400M
Operating income went down by 150% y/y.
An increased revenue does not automatically mean high income.

I don't disagree with you -- I'm just going by AMD's numbers. They are expecting about $8.7 bn in revenue next quarter with operating expenses going back down to what they were last quarter. Tariffs, TSMC increased costs... sure, I can agree with you that their op ex forecast looks quite conservative. Again, I'm just going by what they are reporting. I think realistically, they could reach those revenue numbers as indeed Q3 tends to play out well for those in their industry, but it would be on higher op ex.

 

[helper800]

The vague part isn't really the issue, the "supply chain" part is the weird part.
How is anybody in the supply chain going to know anything at all about how the yield is doing?!

"Intel isn't buying enough of xyz, so their yield must be low?!? "
Does that make sense?

Depends on what is meant by supply chain. Every single person at intel is part of the supply chain.

 

[redgarl]

The MI308 write-off is a one-off because they were expected to ship, then that changed. It in itself isn't recurring, even if it is related to something that is. Yes, tariffs and export restrictions are ongoing and will be for some time. Sure, the full impact hasn't been felt yet, and they are still adding unpredictability today which can cause a H20 or MI308 situation, but financial forecasts can't pop that into their calculations going forward -- only what's expected on known (or thought to be known, at least at the time) quantities like effective tariff rates as announced and written to ink and export restriction limitations.

I guess I don't see what you're trying to say.

Don't bother, he doesn't understand what a write-off is.

 

[-Fran-]

Did line go up?

DID LINE GO UP?!

Yes? Good then.

Regards 😛