Aaron Rakers's questions to Advanced Micro Devices Inc (AMD) leadership • Q1 2025
Question
Aaron Rakers sought to reconcile previous guidance for a flat first-half Data Center GPU performance with the new impact from China export controls. He also asked for the gross margin outlook for the second half of 2025, following the inventory charge in Q2.
Answer
CFO Jean Hu confirmed the $1.5 billion China impact is concentrated in Q2 and Q3, affecting the first-half comparison. However, she reiterated expectations for significant year-over-year growth in the Data Center business for the full year, weighted to the second half with the MI350 launch. Regarding gross margin, Hu stated that excluding the Q2 charge, the margin is around 54%. She expects a slight improvement in the second half, driven by a strong Data Center mix, which will be partially offset by continued strength in the lower-margin Client and Gaming segments.