AM

Advanced Micro Devices, Inc. stock research

Mar 29, 2025

FY2025 Q1

Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Mar 29, 2025

Revenue and gross profit both decreased from the previous quarter, while cost of revenue also declined. Gross margin weakened slightly but remained well above the year-ago level.

Gross margin takeaway

Quarter ended Mar 29, 2025 · FY2025 Q1

Revenue and gross profit both decreased from the previous quarter, while cost of revenue also declined. Gross margin weakened slightly but remained well above the year-ago level.

  • Gross margin improved meaningfully compared to the same quarter one year earlier, supported by a proportionally larger increase in gross profit relative to the rise in revenue and cost of revenue.
  • Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened fractionally. Relative to the same quarter one year earlier, all three metrics were substantially higher, and gross margin improved notably.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

50.2%

Gross profit

$3.7B

Revenue

$7.4B

Cost of revenue

$3.7B

Quarter-over-quarter change

-0.5 pts

Year-over-year change

+3.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Jun 29, 2024$5.8B$2.9B$3.0B49.1%
Sep 28, 2024$6.8B$3.4B$3.4B50.1%
Dec 28, 2024$7.7B$3.9B$3.8B50.7%
Mar 29, 2025$7.4B$3.7B$3.7B50.2%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Dec 28, 2024

-0.5 pts

Year-over-year change

Mar 30, 2024

+3.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross margin improved meaningfully compared to the same quarter one year earlier, supported by a proportionally larger increase in gross profit relative to the rise in revenue and cost of revenue.

Compared to the immediately preceding quarter, revenue and gross profit were lower, and gross margin weakened fractionally. Relative to the same quarter one year earlier, all three metrics were substantially higher, and gross margin improved notably.

Monitor the trend in cost of revenue relative to revenue, particularly whether its decline keeps pace with revenue changes.