AMD reports 30% gaming revenue drop despite “strong demand” for Zen 5 processors
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AMD has just reported its financial results for the first quarter of 2025. As expected, the expansion of its AI and Data Center sector has netted the company some big wins. CEO Lisa Su comments on “an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter”. The company reports 57% year-over-year growth in the Data Center segment, driven by EPYC CPU and Instinct GPU sales.
The report also reveals a 28% uplift in Client and Gaming revenue overall, though the majority of this is due to excellent Client revenue growth to $2.3 billion (up 68%). In contrast, Gaming revenue was down by 30% year-over-year, bringing in $647 million.
- Cores: 8
- Threads: 16
- Boost clock speed: 5.2GHz
- Base clock speed: 4.7GHz
- L3 cache: 96MB
- TDP: 120W
- Platform: AM5
AMD reports “strong demand” for Zen 5 processors
Despite growth in the sector as a whole, AMD’s gaming revenue has still dropped compared to this time last year. However, that’s not to say that the company isn’t doing great. AMD says that the 30% drop is “primarily due to a decrease in semi-custom revenue”. This refers to custom chips for devices such as consoles and handheld devices. Considering we’re within more of a mid-generation period, this makes sense.
AMD highlights the excellent demand for Zen 5 processors, which has no doubt been accelerated by the introduction of X3D chips to the series. The Ryzen 7 9800X3D remains extremely popular among gamers, and its demand forced Team Red to ramp up production a few months back. This was followed by the release of the Ryzen 9 9950X3D and 9900X3D processors, focused more on creators.
Take a look at recent CPU sales stats, and you’ll see that AMD continues to dominate in the DIY market. Much of this comes from its X3D processors, predominantly its latest AM5 socket models from the 9000 and 7000 series. On top of that, older AM4 models remain popular for budget PC builders and outperform Intel in regional stats.
Within its report, AMD also points out the launch of the RX 9070 series graphics cards. The RX 9070 XT, in particular, has been a successful GPU for the company, with its first-week sales being the best in Radeon history – 10x higher according to CEO Lisa Su.
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