Manhattan, New York
– August 6, 2025

In just the last couple of weeks, NVIDIA has added more to its market cap than the entire valuation of AMD—and then some. It’s getting ridiculous. They’re now worth almost as much as the entire German economy.

What’s up, guys? AMD reported Q2 earnings Tuesday after the close. I’ve got a couple of game notes for you coming out of that call and as we think about the rest of 2025.

Let’s talk about their earnings.
They brought in a record $7.7 billion in revenue—4% higher than the $7.4 billion Wall Street expected. That’s a solid 32% year-over-year growth, though earnings per share came in pretty much flat.

In terms of notes:
Their data center segment grew by only 14%. That’s simply not going to cut it. Expectations for that segment are astronomical right now. A key factor here was the strict export controls on their MI300X chips in the Chinese market, which led to an $800 million write-down. For some perspective: last quarter, they reported 57% growth in data center, and Nvidia—AMD’s main competitor—reported 73% growth in the same segment.

All right, let’s talk challenges and opportunities.

Challenges:

1. The Technological Race – AMD is working hard to catch up to or surpass Nvidia in GPU performance.
2. Scaling the Business – There’s huge demand for AMD’s products, and it’s only expected to grow. The company needs to build scalable processes to meet that demand and increase market share.
3. Government Regulation – Export controls, tariffs, and geopolitical risks remain headwinds, particularly in key markets like China.

Opportunities:

1. Overall Market Growth – According to CEO Lisa Su, the market is expected to grow up to $500 billion over the next few years. There’s plenty of room for AMD to capture more share and ride that wave.
2. Technological Advancements – AMD launched its MI300X series to compete more directly with Nvidia, with rollouts continuing through 2025. They also plan to launch the even more advanced MI400 series in 2026.
3. China Rebound – The MI300X chips may eventually be resold in China once export restrictions ease. If and when that happens, it could serve as a nice tailwind for AMD’s business.

Final Thoughts:

The stock is down 8% following the Q2 earnings call but is still up 35% on the year. Overall, this wasn’t a bad quarter. AMD knows what it needs to do—it just needs time to execute. If they can continue innovating, scale operations effectively, and navigate regulatory challenges, I believe they’ll perform very well in the long term.

Let me know what you guys are thinking, feeling, and seeing. Would love to hear it. Be good out there!