AMD (AMD) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Financial performance and AI business momentum

• Achieved $7.7B in Q2 revenue, up 32% YoY, with Q3 guidance at $8.7B, up 28% YoY.

• Data center revenue reached $3.2B in Q2, up 14% YoY, despite export restrictions to China.

• MI350 ramp is driving double-digit sequential growth in data center revenue for Q3.

• MI400 launch planned for next year, MI500 for 2027, supporting ongoing AI momentum.

• Revenue guidance is provided one quarter at a time due to market dynamism.

AI business drivers and customer landscape

• Growth driven by both existing and new customers, including major tech firms and neocloud providers.

• Expansion into tier-two and tier-three model training, preparing for larger deployments.

• Platform supports a wide range of AI model sizes, leveraging CPU, GPU, and adaptive compute.

• Over 40 active sovereign AI engagements globally, with regulatory compliance as a key factor.

• Customer concentration remains high in the medium term, but broader enterprise adoption expected over 5–10 years.

Supply chain, TAM, and market outlook

• Tight supply for advanced wafers and HBM, but strong partnerships ensure capacity for growth.

• AI total addressable market (TAM) now exceeds $500B by 2028, with further growth anticipated.

• Programmable GPU-led infrastructure expected to serve 75–80% of TAM, with ASICs covering the rest.

• CapEx spending by hyperscalers is rising, with AI adoption still in early stages across industries.

• Company is positioned to address long-term AI opportunities despite short-term volatility.