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AMD’s Q2 2025 Revenue Hit a Record, but MI308 Export Controls Drove an $800 Million Charge

AMD’s Q2 2025 revenue reached a record $7.685 billion, but the company reported a GAAP operating loss and about $800 million in MI308 export-control charges.
From TheFinanceBase Team2 min to read
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AMD reported record revenue of $7.685 billion for the second quarter of 2025, announced August 5, 2025. But record sales did not mean record profit: the company reported a $134 million GAAP operating loss and said U.S. export controls on its Instinct MI308 data-center GPUs led to about $800 million in inventory and related charges.

What AMD reported for Q2 2025

AMD’s August 5, 2025 results combined record revenue with sharply different figures for profitability, depending on which financial measure is used.

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Measure Q2 2025 result
Revenue $7.685 billion; a record quarterly revenue figure, according to AMD
GAAP gross margin 40%
Non-GAAP gross margin 43%
GAAP operating income (loss) $(134) million
Net income $872 million
Diluted GAAP earnings per share $0.54

These are AMD-reported figures. The operating loss is not the same measure as net income: AMD reported a loss from operations while also reporting positive net income for the quarter. Revenue measures sales, gross margin measures the share of revenue left after cost of sales, and operating income or loss reflects operating expenses as well as gross profit.

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How much did the MI308 export restrictions cost AMD?

AMD attributed approximately $800 million in Q2 inventory and related charges to U.S. Government export controls on its Instinct MI308 data-center GPU products. The charge is the quarter-specific amount AMD reported; it should not be described as the amount of lost sales or as a recurring quarterly expense.

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The reported 40% GAAP gross margin includes the quarter’s reported charge. AMD’s non-GAAP gross margin was 43%, a separate measure that should not be substituted for the GAAP result. The two figures provide different views of margin, not contradictory reports of one measure.

What the later full-year charge means

In a filing dated March 28, 2026, AMD described approximately $440 million in net inventory and related charges for full-year 2025 due to the export restriction. That annual net amount is not interchangeable with the approximately $800 million charge reported for Q2: the figures cover different periods and use different descriptions. The filing said the controls prevented shipments of certain Instinct integrated circuits and certain Versal FPGAs to China, or to certain customers outside the United States whose ultimate parent was headquartered in a D5 country, without a license. It does not establish that every AMD product or every shipment to China was prohibited.

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Q2 2025 is not AMD’s current quarterly result

The headline figures are historical, not a description of AMD’s latest second quarter. In its August 4, 2026 results, AMD reported Q2 2026 revenue of $11.536 billion and net income of $2.297 billion. That release also presents Q2 2025 revenue as $7.685 billion and identifies the $800 million MI308-related charge in the comparison. The later results provide context for the old record-revenue headline; they do not change what AMD reported for Q2 2025.

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